Woodside Petroleum Ltd., Perth, has let a contract to Bechtel for the front-end engineering design stage for the Pluto LNG Train 2 project on the Burrup Peninsula of Western Australia.
FEED work includes activities needed to finalize the costs and technical definition for the proposed second train at the onshore facility.
The contract also includes an option for Woodside to progress to a lump-sum engineering, procurement, and construction contract for execute phase work. This option is subject to many conditions including a positive final investment decision expected in 2020. The project is expected to come on stream in 2024.
Woodside Chief Executive Officer Peter Coleman said the decision to enter FEED for Pluto Train 2 is a major step towards establishing the Burrup as a regional LNG production center in northern Western Australia.
“Our Burrup Hub vision is taking shape as we work with Bechtel to progress to Pluto Train 2, which will create a pathway for the globally cost-competitive development of Western Australia’s natural gas resources,” Coleman said.
Coleman was referring to Woodside’s preferred concept for the development of the company’s 75%-owned Scarborough gas field, which has 2C resources of 7.3 tcf of gas.
Pluto Train 2 has a target capacity of 5 million tonnes/year of LNG.