Global LNG Collaboration
ConocoPhillips and Marathon Oil contracted with Bechtel to construct the first natural gas liquefaction plant based on a new and innovative liquefaction process, the ConocoPhillips Optimized Cascade process. The result was the Kenai, Alaska LNG facility, which began operation in 1969.
ConocoPhillips’ initial intent was to use the technology exclusively on its own equity projects. However, in the mid-1990s, Atlantic LNG sought to build a low-cost, yet reliable, single train LNG facility. After completing a competitively bid front-end engineering design (FEED), with ConocoPhillips’ support, Bechtel won the engineering, procurement and construction (EPC) contract, resulting in the first externally licensed application of the Optimized Cascade process and the next opportunity for ConocoPhillips and Bechtel to work together in the field of natural gas liquefaction.
As a result of this achievement, ConocoPhillips and Bechtel formed a Global LNG Collaboration (the “Collaboration”) in 1998 to capitalize on ConocoPhillips’ LNG technology and operations expertise and Bechtel’s world-class design and project execution know-how of LNG facilities. Since then, the Collaboration has become a leading player in the LNG industry with a reputation for building efficient LNG plants on schedule and at a competitive cost.
The Collaboration
Our Team
The Collaboration offers customers a world renowned team of skilled professionals. We have integrated teams of LNG technology and EPC experts who are devoted solely to the development of the design and optimization of LNG projects using the Optimized Cascade process. These experienced teams have worked together for years on a variety of projects around the globe, continuously improving designs and incorporating lessons learned from previous projects. The continuity of the Collaboration team is one of the keys to the Collaboration’s overwhelming success.
Bechtel’s Extraordinary Capabilities
When innovative design solutions, execution excellence, and superior value in all phases of a gas project are needed, the industry looks to Bechtel to achieve these goals. Whether building complex projects in remote locations under difficult conditions, supporting customers in arranging international financing, or tackling complicated logistics, Bechtel provides customers with cost and schedule savings breakthroughs. Bechtel is unique among EPC contractors because of its vast ability to design and direct construct multiple LNG projects simultaneously. This is most recently demonstrated by concurrently executing six LNG mega-projects:
- two-train Queensland Curtis LNG project (Queensland, Australia)
- two-train Gladstone LNG project (Queensland, Australia)
- two-train Australia Pacific LNG project (Queensland, Australia)
- two-train Wheatstone LNG project (Western Australia)
- five-train Sabine Pass Liquefaction project (U.S. Gulf Coast)
- two-train Corpus Christi Liquefaction project (U.S. Gulf Coast)
Most Bechtel LNG projects are constructed under lump sum turnkey contracts. Bechtel’s unique approach to modularization, combined with its unprecedented worldwide resources to support construction, facilitates predictable outcomes. Project owners know they can depend on Bechtel to deliver.
Collaboration Advantages
Reputable licensor and EPC contractor - “One Team”
- ConocoPhillips as an owner, licensor and operator of LNG facilities, and Bechtel as a world class EPC contractor offer:
– consistent development and application of best practices for more than 20 years
– credibility to LNG developers and their financial institutions
Predictable outcomes
- Bechtel’s unparalleled track record of constructing successful projects on time and within budget
- Together, ConocoPhillips and Bechtel provide a performance guarantee for LNG production
Owner’s perspective
- As an owner and operator of multiple LNG facilities, ConocoPhillips has broad experience in all aspects of the LNG value chain and shares valuable design and operational insight with licensees
Services and support expertise.
- The Collaboration provides experienced subject matter experts to:
– contribute in all project phases
– provide quality assurance of key equipment
– ensure safe, successful commissioning and startups
– train operators and provide post startup operational support
Product Development Center
ConocoPhillips and Bechtel continue to enhance the Process technology through a joint Product Development Center located in Houston, Texas. Employees from both companies continually collaborate to enhance the Optimized Cascade Process, conducting both engineering evaluations and in-field testing and application.
Through their joint collaboration, the companies have not only used process optimization and value engineering to improve the ConocoPhillips Optimized Cascade Process, but also have developed methods to improve project duration execution procedures that lower unit costs.