Arrow Energy Awards Australia LNG Design Contract to Chiyoda, Saipem Group
Arrow Energy Ltd., the Australian company acquired last year by Royal Dutch Shell Plc (RDSA) and PetroChina Co., awarded an engineering and design contract for its proposed liquefied natural gas project to Chiyoda Corp. (6366), Saipem SpA (SPM) and Chicago Bridge & Iron Co. NV.
The group that won the “multi-million dollar” contract will carry out the design during the next 12 months, Brisbane- based Arrow said today in an e-mailed statement. The LNG venture on the coast of Australia’s Queensland state is expected initially to have two processing units, each producing 4 million metric tons of the fuel a year, Arrow said.
Arrow is seeking to follow BG Group Plc, Santos Ltd. (STO) and ConocoPhillips in reaching a decision to proceed with a project that will liquefy natural gas from coal deposits. The ventures are among A$200 billion ($210 billion) of planned LNG projects in Australia targeting rising Asian demand for the fuel.
Arrow expects an investment decision in late 2013, Chief Executive Officer Andrew Faulkner said in June.
Shell, Europe’s largest oil company, is “quite happy” to wait to develop the project, Chief Executive Officer Peter Voser told analysts last month. Recent approvals for rival projects valued at about $50 billion may drive costs higher, he said.
The Arrow LNG project on Curtis Island may eventually have four processing units producing as much as 16 million tons of LNG annually, the company said in today’s statement.
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