Chiyoda awarded contract for LNG plant in Australia

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Chiyoda Corp said Wednesday that CJV, a joint venture comprising of Chiyoda, CB&I and Saipem S.p.A., has been awarded a contract for the Arrow LNG plant project in Gladstone, Australia. Arrow Energy Pty Ltd, the project operator, is a 50/50 joint venture owned by Royal Dutch Shell PLC and PetroChina.

The project, which will be designed with a production capacity of 8 million tons per annum, is planned to be constructed on Curtis Island, off the coast of Gladstone, on the east coast of Queensland. The project has the potential to expand its capacity up to 16 million tons per annum in the future. The LNG plant will be supplied with coal seam gas from the Surat and Bowen Basins in Queensland and will process, treat and liquefy the gas for export.

Coal seam gas is a naturally occurring gas formed as a by-product of the coal formation process. It is typically 95-98% methane with a small amount of nitrogen and, in some instances, contains carbon dioxide. One of its most common uses is for electricity generation, but is also commonly used for industrial purposes and recently, due to global increase in natural gas consumption, international oil companies are considering to use it as a feedstock of LNG production.