Arrow tenders Gladstone LNG

ARROW Energy has issued an invitation to tender for its liquefied natural gas plant feed on Curtis Island.

Arrow Energy has issued the invitation to four Australian and international consortia to tender for the front end engineering design (FEED) contract for its planned Liquefied Natural Gas (LNG) plant on Curtis Island.

The Invitation to Tender (ITT) represents the first phase in the development of Arrow’s multibillion dollar LNG Plant, which will convert coal seam gas (CSG) to liquefied natural gas (LNG) for export markets.

Four consortia will bid for this phase of the project: KBR/HQCEC/John Holland/ Leighton;
Chiyoda/CBI/Saipem; Technip/JGC/Clough; and Foster Wheeler/ Worley Parsons.

“There has been significant local and international interest by leading LNG design companies together with local and international engineering firms, which demonstrates the desire of major industry contractors to be part of this exciting development,” Arrow’s CEO Andrew Faulkner said.

The successful consortium will be responsible for creating the design for the LNG Plant. The decision on who will construct the plant will be determined at a later stage.

The Arrow LNG Project includes gas development in both the Bowen Basin, in central Queensland, and the Surat Basin, in south west Queensland.

Two major pipelines will take the gas from the basins to Gladstone, where it will be cooled to -162°C to form a liquid for transport to overseas markets.

Royal Dutch 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.

Tenders close in February 2011.