Inpex Ichthys LNG Project: MEC-1 - case study
The Ichthys Liquified Natural Gas (LNG) Project is part of Inpex Australia’s development of the Ichthys Field in the Browse Basin area of the Timor Sea off the Northwest coast of Australia, producing LNG and extracting condensate and liquefied petroleum gas for export.
The Ichthys LNG Project is one of Australia’s largest resources projects. The reserve volume of the Ichthys Field is estimated to be 12.8 trillion cubic feet of natural gas and 527 million barrels of condensate. Inpex initial target was to produce 8.4 million tonnes of LNG per annum, 1.6 million tonnes of LPG per annum, and 100,000 barrels of condensate per day at peak capacity.
This was to be achieved through the Phase 1 development, to produce LNG from two LNG trains (this scope), with plans to extend the project to include another two LNG trains.
UGL and Kentz (now part of SNC Lavalin) formed a 50/50 unincorporated joint venture (UGL Kentz JV) to deliver the services required for the project management, procurement, construction pre-commissioning and commissioning support for installation of the two LNG Process Trains and the Inlet Facilities.
The scope of work for the mechanical works package (MEC-1), included structural, mechanical and piping installation and pre-commissioning works required for the mechanical completion for the LNG Train 1, LNG Train 2 and the Inlet Facilities areas. The scope of works included:
- installation of stick-built steel structures
- installation of mechanical equipment (vessels, columns, internals and externals, packaged equipment
- installation of stick-built piping including free issue prefabricated spools
- hook-up and tie-in of modules and piping systems
- non-destructive testing (NDT) and pressure testing
- assistance with heavy lifting work ie: preparing foundations, alignment and grouting
- equipment preservation
In Feb 2018, UGL completed the construction phase of Ichthys LNG Plant, MEC-1 package, with the achievement of zero lost time injuries (LTIs) or environmental incidents, for 10,432,566 total work hours and a peak workforce of 1,250.
Due to additional works required, the Project was re-baselined in 2016 with a revised Deed of Settlement. Under this revised scope and schedule all project milestones were met, leading to provisional acceptance of the LNG Train 2 in November 2017 and provisional acceptance of LNG Train 1 in February 2018.
Other key milestones achieved included:
- Jun 2017: construction and pre-commissioning works of inlet area
- October 2017: construction and pre-commissioning works of LNG Train-2
- January 2018: construction and pre-commissioning works of LNG Train-1