Order received for largest LNG receiving terminal in the US
Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) and (＊)Aker Kvaerner Inc. (AK Inc.), a major engineering company in the US, have jointly received an order for construction of an LNG receiving terminal amounting to 500 million US dollars. Construction work will be executed under the EPC (engineering procurement construction) contract basis.
This terminal will be constructed in the suburbs of Hackberry, Louisiana, and consist of three 160,000kl LNG storage tanks. The capacity is equivalent to supply of 1.5 billion cubic feet a day for domestic demand (annual capacity for LNG receiving: seven to ten million tons). Commercial operation of the terminal will begin in 2008. This terminal is the first such facility built in the US for more than 20 years since several LNG receiving terminals were built in the early 1980s.
Demand for LNG has increased recently in the US, which has stimulated the construction of new LNG receiving terminals. IHI concluded a cooperative business agreement with AK Inc. for marketing and construction of LNG receiving terminals and storage tanks in North America in June 2004. Therefore, this order is the first joint achievement after the business agreement.
IHI has much experience in the LNG-related business in Japan and overseas, particularly LNG receiving terminals built in India, Mexico, and Taiwan after 2000, which prove its capacity in this area. The company will continue to develop the prospective market worldwide, based on its expertise.
*Aker Kvaerner Inc. : a general contractor established in the US as an affiliate company of Aker Kvaerner ASA headquartered in Norway. Plays a central role in the petroleum and chemical engineering business for the AK group. The group has excellent achievements in engineering work for offshore development facilities, petrochemical plants, electric power generation facilities, marine civil engineering, and mining facilities, particularly for facilities used in offshore LNG exploitation.