Foster Wheeler/WorleyParsons JV Receive LOI from Woodside

Foster Wheeler Ltd's Australian subsidiary Foster Wheeler (WA) Pty Ltd., in a joint venture with WorleyParsons Services Pty Ltd., has received a letter of intent from Woodside Energy Ltd. for the EPCm contract for the proposed LNG Phase V project to be built at Karratha (approximately 1100 km north of Perth), Western Australia. Signature of the contract is subject to approval of the project by the North West Shelf Venture participants. Approval is expected during the first half of 2005. The value of the joint venture booking is currently confidential.

"We are delighted to receive the letter of intent from Woodside for this major contract," said Steve Davies, chairman and chief executive officer of Foster Wheeler Energy Limited. "We will combine our ability to execute and manage complex world-scale projects and our proven EPC LNG liquefaction experience, together with WorleyParsons' project execution track record and intimate knowledge of the existing Karratha LNG complex, to deliver a safe, successful, high-quality facility."

This Phase V expansion project, which has an investment cost of around US$1.58 billion, comprises the addition of a fifth train of LNG production, with a capacity of 4.2 million tonnes a year of LNG, to the existing LNG complex at Karratha. The complex originally started up in 1989.

The Foster Wheeler/WorleyParsons joint venture will be responsible for engineering the new plant, procurement and management of equipment supply, fabrication and construction. In addition to train 5, the contract calls for the provision of an additional fractionation unit, acid gas recovery unit, boil-off gas compressor, two new gas turbine power generation units, a second loading berth and a new fuel gas system compressor. The facility is expected to start up in the fourth quarter of 2008.

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Posted 07/03/05

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