Saipem-led JV wins onshore contract in Thailand for $925m

A joint venture (JV) between Saipem and CTCI has secured a new contract to provide onshore engineering and construction services in Thailand to PTT LNG Company in a $925m deal.

PTT LNG is a subsidiary of Thailand’s state-owned oil and gas firm PTT Public Company.

Operating as the JV leader, Saipem will hold a 55% interest and a $500m share in the total contract value.

The scope of the contract includes the engineering, procurement, construction and commissioning of the Nong Fab terminal, in the Mueang Rayong district, in the south-east of the country.

The terminal will have a maximum receiving capacity of 9mmtpa and is designed for the receipt, storage and regasification of liquefied natural gas (LNG).

Saipem CEO Stefano Cao said: “As well as consolidating Saipem’s presence in an area with great prospects for development such as South East Asia, the signing of this contract strengthens our position in the LNG sector, which is of interest to us in terms of both the liquefaction and regasification segments.

“Furthermore, this contract represents a step forward towards achieving greater balance in our portfolio, between downstream and gas projects and those linked to upstream.”

In January, PTT LNG awarded a project management consultancy (PMC) contract to Tokyo Gas’ wholly owned subsidiary Tokyo Gas Energy Solutions for the Nong Fab terminal.

According to Tokyo Gas, the terminal is expected to have a capacity to accept 7.5Mt of LNG per annum.