TNS have signed Bundled Phases-3 of a long-term, large-scale contract for the construction of wellhead platforms (hereinafter “WHP”) and subsea pipelines (hereinafter “subsea PL”) for oil and gas development with PTTEP, the national petroleum exploration and production company of Thailand. This is a long-term, large-scale contract order following on from the successful execution of Phase 1 (2011-2015) and Phase-2 (2015-present) long term contracts by its parent company Nippon Steel Engineering Co., Ltd. (NSE)NSE and TNS. The project will support operations fields in the Gulf of Thailand, and consider most important to support the country’s energy security significantly.
This project is a long-term, large-scale contract for the construction of around 40 WHPs and the laying of approximately 280 km (7km/pipeline x 40 pipelines) of subsea PL in those fields over a period of five years for EPC contract and three years for T&I contract (the total contract amount is expected to be approximately 100 billion yen). TNS will be responsible for the design, procurement and fabrication of the WHPs and modification of the existing WHP, while NSE as a subcontractor of TNS will be responsible for the marine transportation and Offshore Installation. The Offshore Installation of the WHPs and the laying of the subsea PLs will be carried out mainly by offshore work vessels Kuroshio, owned and operated by NSE.
Since the 1970s, NSE and TNS have contributed to Thailand’s energy security (domestic natural gas accounts for more than 40% of Thailand’s electricity production) and economic growth through the construction of approximately 120 WHPs and 2,500 km of subsea PLs in the Gulf of Thailand.
In this project, in addition to the relationship of trust with PTTEP that we have cultivated over the years, our proposal is based on the implementation of productivity improvement measures that we have taken to date, such as increasing the speed of laying subsea PLs by using our self-developed automatic welding machines, expanding the supply chain, and promoting smart factories, such innovations were highly evaluated and led to the award of the contract.
Through the execution of this project, we aim to gain more trust from our customers in terms of project management, quality and process control, etc., and also to provide new solutions utilizing our internal and external technologies to meet the diversifying needs of the industry, such as the removal and reuse of aging WHPs and subsea PLs, and productivity improvement through the use of IoT.
In addition, it is said that there are many undeveloped natural gas fields in the Gulf of Thailand and surrounding countries, and we aim to participate in these resource development projects in the future.
Furthermore, as Japan’s only comprehensive engineering company with many years of experience and expertise in the design, procurement, fabrication, transportation, and construction of offshore steel structures, we are actively involved in the construction of offshore wind power generation facilities, a next-generation renewable energy source for which demand is growing in Japan.
In recent years, TNS has also stepped up its efforts in the construction of factories, onshore plants, and environmental facilities in addition to oil and gas sector projects.
NSE Group will contribute to the sustainable development of a wide range of society and industries.