KBR, Inc. (NYSE: KBR) announced today that it is pursuing a new phase of joint development with ConocoPhillips LNG Licensing LLC to provide low-cost and expedited mid-scale LNG solutions for the marketplace. The companies will leverage their extensive expertise in LNG to jointly develop a standardized LNG train that will provide mid-scale LNG capacity for both greenfield and brownfield expansions seeking an off-the-shelf solution to reduce costs and shorten schedules for LNG facility installations.
KBR and ConocoPhillips have agreed to complete a front-end engineering and design (FEED) quality reference design for a mid-scale capacity LNG train (1.5 – 3.0 MTPA) suitable for a wide range of feed gas and ambient temperature conditions. The integrated design approach, utilizing ConocoPhillips' proven Optimized Cascade® process technology and constructed with integrated modularized construction, is expected to be available for new LNG projects starting in 2019.
Work began with ConocoPhillips in 2017 with KBR applying their SmartSPENDSM methodology to achieve cost reductions for LNG facilities using the Optimized Cascade® process technology. Building on this experience and responding to demand in the marketplace, the parties decided to focus on developing a mid-scale LNG solution that achieves low unit costs and fast deployment while maintaining high efficiency and operability. The parties will also continue to cooperate on large scale LNG trains utilizing similar methodology and technology.
"KBR and ConocoPhillips both have a well-established and respected history in LNG," said Farhan Mujib, KBR President, Hydrocarbons Services Americas. "This unique opportunity leverages that experience to combine KBR's plant configuration and project execution experience with the reliable and well-proven ConocoPhillips' LNG technology and operating experience."
KBR has delivered approximately one third of the world's current LNG production capacity and has been consistently active in the LNG industry for over 40 years. The ConocoPhillips Optimized Cascade® process is utilized in LNG plants producing about 23 percent of the world LNG supply. KBR has experience with nearly every LNG process technology licensor in order to integrate the most suitable process technologies with KBR's execution solutions for project-specific conditions.
Date: Sep 17, 2018