Santos LTD Gladstone Liquefied Natural Gas Program - EPC

Fluor was awarded an engineering, procurement and construction (EPC) contract by Santos Ltd in January 2011 for its Gladstone Liquefied Natural Gas (GLNG) project in Queensland, Australia.

Fluor's EPC contract includes upstream facilities associated with the 7.8 million tonnes-per-year liquefied natural gas (LNG) project that will extract and liquefy gas from coal deposits for eventual export to Asia and other global markets.

The GLNG project is one of the largest in the world. In 2012, Fluor made significant progress on the project, including construction of temporary camps; pilings; a pond; road networks; setting mechanical equipment; installation of pipelines, gas/water gathering networks and overhead power lines; and wellpad mechanical, engineering, and instrumentation construction. Shutdown and tie-ins to existing infrastructure have also been completed.

Perhaps the greatest milestone of this phase of the construction was the achievement of 2 million safe work hours.

The workforce on the project represents people from all over the world, including Australia, Europe, the Philippines, South Africa, and the U.S. The project leadership strives to create harmony among the differing cultures.

The project represents a major investment in the local community and has increased the number of jobs in Queensland. Santos and Fluor are investing billions of dollars in the community through local procurement of goods and services for the project.

In addition, the Fluor Australia GLNG community engagement plan has been implemented through sponsorship initiatives that benefit not-for-profit organizations and indigenous groups.

Client's Challenge

The project is a partnership between Santos, Australia's largest domestic gas producer, PETRONAS, Malaysia's national oil and gas company and the second largest LNG producer in the world, Total, French energy major and the world's fifth largest publicly traded integrated international oil and gas company, and KOGAS, the world's largest buyer of LNG.

GLNG is a groundbreaking project that will use world-first technology to process coal seam gas (CSG) into LNG. It represents a major investment in Queensland jobs and a cleaner energy source for the future, and will cement the state's position in a booming international LNG market.

The LNG project involves development of coal seam gas production and processing facilities, onshore pipelines that include a 270-mile (435-kilometer) gas pipeline to Gladstone, and the LNG liquefaction plant at Gladstone. The Santos joint venture is developing and will operate the 435-kilometer gas pipeline to Gladstone and the LNG liquefaction plant there. Santos will develop the port facilities.

Fluor's Solution

Fluor was awarded the front-end-engineering and design (FEED) contract in June 2009. In January 2011, Santos awarded Fluor the engineering, procurement, and construction phase of the project.

Fluor and Santos work closely to engage the industry stakeholders, especially local businesses, the Industry Capability Network, and local interest groups to ensure maximum opportunities for Australian industry as the project progresses.

Construction on the GLNG project is now in progress, and aside from local workers, site staff includes workers from other parts of Australia, Europe, the Philippines, South Africa, and the U.S. Site management strives to bring harmony among the different cultures working on the site.

Fluor adheres to stringent compliance rules governing the environment and cultural heritage in Queensland. Fluor and Santos work together to minimize the project footprint as much as possible.

Project completion is estimated for December 2014.

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Conclusion

Fluor is continuing its working relationship with Santos, the Gladstone LNG partners, and the State of Queensland by assisting them to become a leading supplier of LNG to key economies in Asia.

The landmark clean-energy project is being developed with world-class environmental standards and close engagement with local communities.

The first cargo is scheduled for export in 2015.