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Kumul Petroleum awards design and development Contracts of FSRP facility

Kumul Petroleum awards design and development Contracts of FSRP facility

Kumul Petroleum Holdings Limited (Kumul Petroleum) has awarded two contracts to design and develop a Floating, Storage, Re-gasification and Power (FSRP) Generation unit to be located in the northern region of Papua New Guinea.

The first of the FSRP development Contracts has been awarded to Chiyoda Corporation headquartered in Japan in partnership with Moss Maritime of Norway, with the second Contract being awarded to Wison Offshore and Marine based in Shanghai, China.
 

Kumul Petroleum, Papua New Guinea’s national oil and gas company has undertaken a very robust facility design and development Request for Quotation (RFQ) and evaluation process of the responses received, with several of the worlds most experienced floating offshore facility engineering and construction companies; noting Kumul Petroleum’s mandate is to aggregate and distribute both
domestic and equity invested gas allocations from existing and future PNG development projects.
 

Kumul Petroleum Managing Director Wapu Sonk stated that: “Kumul Petroleum has awarded these Contracts on the basis of holding a design competition between the two RFQ compliant engineering contractors (One Japanese and one Chinese) as each of their design options presented offered very different, and very interesting, value benefits to PNG, such as significant capital cost reductions and fast track schedules. Kumul Petroleum has therefore, taken a leadership role by awarding these two design and engineering development Contracts that will facilitate the additional electricity generation for the people of PNG and assist in the fast track development of heavy industry.”

The basis of the FSRP facility design is a multi-purposed “hub” facility with the capacity to generate and export into the local transmission grid 75 MW of power, load and store up to 140,000m3 of LNG, offload LNG to small scale (SS) LNG bulk cargo vessels that can distribute LNG to other locations such as Lihir Island for power generation, and re-gasify and export natural gas via pipeline for the likes of heavy industry fuel gas for existing and future mining developments.

In early 2020 Kumul Petroleum completed a conceptual selection and feasibility study with the objective of evaluating the electrification demand and supply requirements to meet the PNG 2030 Strategic Plan, and assessing the economic basis of several facility design options inclusive of onshore, nearshore and offshore located facilities, and the different fuel supply options for each. Resultant of this study the offshore FSRP facility, to be located just offshore of Lae in the Morobe Province had been identified as the most economical and technically feasible option.
 

 

 

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