Chicago Bridge & Iron awarded contract for construction of gas liquefaction plant
The PERU LNG project, the largest industrial project in Peru's history, was officially launched today with the award to Chicago Bridge & Iron Company N.V. (CB&I) of an engineering, procurement and construction (EPC) contract for a natural gas liquefaction plant worth more than US$ 1.5 billion. The authorization of the Notice to Proceed represents an international commitment by the consortium formed by Hunt Oil of the USA, SK of South Korea and Repsol YPF of Spain to move forward with direct investment for the development of the PERU LNG gas export project. Hunt Oil Company will be the operator of the project.
El proyecto de PERU LNG es un componente clave dentro del plan energético del Perú. La exportación de las reservas de gas natural, volumen en exceso a la demanda local, proporcionará un producto de exportación sostenible por más de dos décadas, estimando el inicio de las exportaciones a mediados del año 2010.
The total cost of the project, including the liquefaction plant, related marine facilities, pipeline, and development and financing costs, is approximately $3.8 billion and is the largest foreign investment in Peru's history. It has the strong support of the Peruvian government as it will be an important mechanism for economic growth and jobs in Peru. Once in operation, the PERU LNG project is expected to generate some US$800 million per year in export revenues. During the construction phase, 35,000 direct and indirect jobs will be created.
Financing for the project is expected to come from different sources, including the Inter-American Development Bank, with which PERU LNG signed a US$800 million mandate letter in July 2006.
"The PERU LNG project continues to develop on schedule with the support of the Peruvian government and our confidence in the stability of the country," said Steve Suellentrop, president of PERU LNG, "and we anticipate completing the project in the first half of 2010 as planned.
The contract for the construction of the LNG plant and marine facilities awarded to CB&I, valued at more than US$1.5 billion, represents the largest single investment in the project. The project is expected to be completed in four years.
CB&I is one of the world's leading construction companies. The company recently completed the installation of an LNG receiving unit in the Dominican Republic, hiring and training 90% of its workforce from the local population and completing the project without incident or loss of work time.
"We are confident that CB&I is the best company we can hire to build the facilities associated with this important project," said Suellentrop. "We look forward to the rapid expansion of the PERU LNG project in the coming days and months."
