Press release from PR Newswire
ShawCor secures a second pipe coating contract for the Ichthys LNG project
Friday, June 29, 2012
(TSX: SCL.A, SCL.B)
TORONTO, June 29, 2012 /PRNewswire/ - ShawCor Ltd. (TSX: SCL.A, SCL.B) today announced that its pipecoating division, Bredero Shaw, has received a contract with a value in excess of US$100 million from McDermott Australia Pty. Ltd. to provide pipeline coatings and related products and services for the flowlines and tie-in spools for the Ichthys LNG Project. This is the second contract Bredero Shaw has received for the Ichthys LNG Project and is in addition to the contract for the gas export pipeline announced on February 14, 2012.
The Ichthys LNG Project is a Joint Venture between INPEX (Operator) and Total. Gas from the Ichthys Field, in the Browse Basin approximately 200 km offshore Western Australia, will be gathered using the risers and flowlines and will undergo preliminary processing at the offshore central processing facility to remove water and extract condensate. The gas will then be exported via an 889 km subsea pipeline to the onshore LNG facility to be located at Blaydin Point, Darwin, Northern Australia. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.
The contract involves coating approximately 148 km of 6" to 18" diameter pipe that will be protected with three-layer polypropylene anticorrosion coating and Thermotite® multi-layer polypropylene insulation. Work will commence during the second quarter of 2013. The company will execute the work at Bredero Shaw's facilities in Kabil, Indonesia and Kuantan, Malaysia. The Kabil and Kuantan facilities are technology-based, full service coating plants that were built specifically to process large, complex projects in the Asia Pacific region.
ShawCor Ltd. is an energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The company operates through seven divisions with over seventy manufacturing and service facilities located around the world.
Bredero Shaw, ShawCor's largest division, is the global leader in pipe coating solutions and employs approximately 4,000 permanent and contract personnel located at offices and facilities in fifteen countries. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications.
This news release contains forward-looking information within the meaning of applicable securities laws. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "predict", "estimate" or similar terminology are used to identify forward-looking information. This forward looking information is based on assumptions, estimates, and analysis made in the light of the company's experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the company to be reasonable and relevant in the circumstances. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed, or implied by the forward-looking information. The risks and uncertainties include, among other things, changes in global economic activity and changes in energy supply and demand which impact on the level of drilling activity and pipeline construction; political, economic and other risks arising from international operations; compliance with environmental, trade and other laws; liability claims; fluctuations in foreign exchange rates and fluctuations in raw material prices, as well as other risks and uncertainties that are more fully described in the company's Annual Information Form, annual and quarterly reports and other reports and filings made with securities regulatory authorities and available at www.sedar.com.
SOURCE ShawCor Ltd.
For further information: <p> ShawCor Ltd. </p> <p> Gary Love<br/> Vice President, Finance and CFO<br/> Tel: 416-744-5818<br/> Email: <a href="mailto:email@example.com">firstname.lastname@example.org</a><br/> Website: www.shawcor.com </p>