KBR awarded pre-FEED study for Indonesian LNG project

US-based engineering and construction company KBR was awarded a pre-front-end engineering and design (FEED) study for PT Australasia LNG Indonesia's (AALNG) new proposed LNG Hub terminal in Probolinggo, East Java, Indonesia.

This is the company’s first contract with AALNG.

According to the contract, KBR will conduct a pre-FEED study for the onshore LNG re-gasification and truck loading distribution facilities of AALNG's proposed LNG Hub Terminal.

The study will be further developed for subsequent implementation phases to meet a throughput capacity of three million MTPA.

The terminal could also be potentially expanded by adding more LNG Regas trains and LNG storage to fulfil future demands in the East Java region.

The study is expected to be performed for ten weeks.

KBR will conduct the pre-FEED study with an integrated team led by LNG expertise from its London office. The team will receive assistance from KBR's Jakarta office and its Granherne subsidiary.

KBR Asia Pacific region president Greg Conlon said: “KBR is pleased to be awarded this important project and we look forward to furthering our working relationship with AALNG and to supporting AALNG in their future projects.

"This project demonstrates KBR's ability to offer integrated solutions through a collaborative execution model to our customers in Asia Pacific by bringing together our global knowledge, experiences and expertise."

In the last 40 years, KBR has led the concept development, study, design and construction of more than 45% of all the LNG facilities globally.

It took part in nearly 50 LNG terminal projects covering all phases, including feasibility studies, basic design, FEED and engineering, procurement and construction (EPC) execution.

The company did not disclose the revenue associated with this project. It will be booked into the backlog of unfilled orders for KBR's engineering and construction business segment in the fourth quarter of 2016.