USA based Azota to construct Stanley gas facility in PNG

 OPERATOR of Stanley gas and condensate project in Western Province, PNG , Arran Energy, has selected an engineering, procurement and construction contractor for the upstream production facility required for the project.

Arran said Houston-based Azota Gas Processing had a conditional award with a firm contract to be issued once Arran reached a final investment decision (FID) and completed the required project financing arrangements.

Stanley is located in Western’s forelands region, and will initially be a condensate stripping and gas recycling scheme, meaning the condensate will be separated out from the petroleum stream while the gas will be reinjected into the Stanley reservoir, and developed at a later date.

Arran kicked off the process of securing the main engineering, procurement, and construction (EPC) contractor last year.

Arran’s chief operating officer Chris Breckenridge said Azota was selected following a competitive two-stage bidding process involving four bidding groups – two from North America and two from Southeast Asia.

The upstream facility is to be built on a modular basis with design throughput of 90 million cubic feet per day of wet gas and 2,800 barrels per day of condensate.

In total, about 50 modules will be required with the critical process and equipment modules to be built at Azota’s fabrication facility in Stafford, Texas.

Some pipe rack modules will be fabricated somewhere closer to PNG.

All the modules will then be transported to PNG, ferried up the Fly River to the port town of Kiunga, and assembled on piles at the Stanley field location.

Arran is targeting a final investment decision at the end of this month, provided it has secured project financing.

“With the completion of this critical tender we have a good understanding of total development costs, and we don’t see any showstoppers to a successful FID and proceeding with the project execution,” Breckenridge said.

Following FID, the operator expects a period of 18 months until first gas, which means Stanley could be on stream by the end of 2023.

The EPC contract is the largest contract for the entire development, with additional work on earthworks, site civils, transportation, and installation and tie-in of the modules yet to be awarded.


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