Engineering deal for Newcastle LNG terminal

Watpac will be supported by Mott MacDonald, an international marine and engineering infrastructure consultant with significant experience in the design and engineering of multiple FSRU projects around the world. Additionally, Newcastle GasDock Company Pty. Ltd., a wholly-owned subsidiary of EPIK, has been established in Australia to carry out the project, announced last December.

Jee Yoon, EPIK’s founder and managing director, said: “This is a significant step forward for the Newcastle LNG project. Partnering with Watpac and Mott MacDonald for the exclusive provision of design, engineering and EPC services for Newcastle LNG enables EPIK to secure uncompromising engineering expertise at a competitive price point, facilitating and preserving our aggressive project development schedule.”

Watpac is a wholly-owned subsidiary of BESIX, which in September 2018, completed the design and construction of the Bahrain LNG import terminal located offshore Muharraq Island, which is anticipated to commence commercial operations in May of this year.

Project support

“As an Australian company, we are thrilled to be partnering with EPIK to deliver the engineering and construction services for this critical project,” said Bram Gruwez, Watpac general manager, marine & civil. “With our help, the Newcastle LNG import terminal will safely provide NSW with a long-term source of competitive gas supply, supporting existing and future industry and helping to grow the region’s economy.”

In February 2019, it was announced that EPIK and Hyundai LNG Shipping had formed a strategic partnership to collaborate on FSRU projects around the world, including the Newcastle FSRU. EPIK is also receiving environmental and planning support from Arup, and legal and regulatory counsel from K&L Gates, as well as support from other companies.

EPIK expects to place an order for the FSRU newbuild with a shipyard, subject to Newcastle Gasdock Company receiving all regulatory approvals for the project, which the company currently estimates to receive by early 2020.