Shell, Petrochina invite tenders for Curtis Island CSG-LNG project

A joint venture of Royal Dutch Shell PLC and Petrochina has invited tenders for the front-end engineering and design (FEED) phase of its proposed CSG-LNG project at Curtis Island near Gladstone in Queensland.

Dec. 27, 2010

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 27 -- A joint venture of Royal Dutch Shell PLC and Petrochina has invited tenders for the front-end engineering and design (FEED) phase of its proposed CSG-LNG project at Curtis Island near Gladstone in Queensland.

Invitations to tender were sent to four Australian and international consortia. The four are joint ventures of:

• KBR Inc., China Huanqui Contracting & Engineering Corp., John Holland Group, and Leighton Contractors Pty Ltd.

• Chiyoda Corp., Saipem SPA, and Chicago Bridge & Iron Co. NV

• Technip SA, JGC Group, and Clough Ltd.

• Foster Wheeler AG and WorleyParsons Ltd.

The successful group will be responsible for carrying out FEED for the LNG plant. A decision on who will construct the plant is to be made at a later date.

Shell and Petrochina completed a $3.4 billion (Aus.) takeover of Arrow Energy Ltd. earlier this year to secure CSG reserves for the planned four-train, 16 million tonne/year capacity plant on Curtis Island.

Stage 1 includes construction of two trains of 4 million tonnes/year each.

A final investment decision is scheduled for 2012, leading to the project being brought on stream in 2017.

Tenders for the FEED phase close in February.