INDUSTRY BRIEFING MECHANICAL WORKS FOR PROCESS AND …

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ICHTHYS PROJECT ONSHORE LNG

FACILITIES

INDUSTRY BRIEFING

MECHANICAL WORKS FOR PROCESS AND INLET

FACILITIES (MEC-1)

&

UTILITIES AND OFF-SITE AREAS (MEC-2)

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ACKNOWLEDGEMENT TO COUNTRY

Larrakia – Saltwater People

On behalf of the Project we would like to take this opportunity to

acknowledge and recognise the Traditional Owners - the Larrakia

people, past and present and acknowledge that we meet here on their

Traditional Lands.

Neil Cass, AIP Local Content Manager, JKC

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LNG PROCESS TRAINS AND INLET FACILITIES (MEC-1)

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SAFETY

MOMENT

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INTRODUCTION

by

NEIL CASS

Australian Industry Participation (AIP)

Local Content Manager

Ichthys Project

JKC Australia LNG Pty Ltd


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LNG PROCESS TRAINS

AND

INLET FACILITIES

(MEC-1)

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PROJECT STRUCTURE

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JKC Australia LNG Pty Ltd

UGL Kentz JV

Lower Tier

Subcontractors Lower Tier

Vendors


INPEX

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AGENDA

• UGL KENTZ JV Welcome and Introduction

• LNG Process Trains and Inlet Facilities (MEC-1) Project Structure

• MEC-1 Project Details

• AIP, Aboriginal & Torres Strait Islander (ATSI) Engagement

• Industry Capability Network

• Project Requirements – Health, Safety, Environment and Quality

• Lower Tier Subcontractor / Supplier Packages

• Lower Tier Subcontractor / Supplier selection process

• Open Discussions

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WELCOME

UGL Kentz JV Team

• Project Manager: Steve Warlow

• Deputy Project Manager: Carlo Macchiusi

• Construction Manager: Mark Dimasi

• Country Indigenous Development Mger: Ken Torrance

• Procurement/Contracts Engineer: Yannick Vallet

• Procurement Manager: Murray King

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INTRODUCTION

UGL Kentz JV Background

UGL Kentz JV is a 50/50 joint venture between UGL Operations

and Maintenance Pty Ltd and Kentz Pty Ltd

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UGL and Kentz Pty Ltd are both leading providers of engineering, construction

and maintenance services with a diversified end-market exposure across the

core sectors of:

• rail;

• transport & technology;

• systems;

• water and power;

• resources; and

• defence,

balanced by a leading operations and maintenance capability.


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Our Values

Our values reflect the blueprint for our company to operate successfully and are

consistently applied across all of our businesses worldwide.

Safety

Teamwork

Honesty and openness in

communication

Outstanding client service

Integrity


PROJECT SCOPE

Mechanical Works subcontract package (MEC-1) is for

the installation of two LNG Process Trains and the Inlet

Facilities. The work includes the provision of:

• project management;

• minor procurement;

• construction;

• pre-commissioning; and

• commissioning support associated with the installation .

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PROJECT SCOPE - DETAIL

The Scope of Works includes:

• Installation stick-built steel structures

• Installation of mechanical equipment (vessels, columns, internals &

externals, packaged equipment etc.)

• Installation of stick-built piping including free issue prefabricated

spools

• Hook-up and tie-in of modules and piping systems

• Non Destructive Testing (NDT) and pressure testing

• Assistance with heavy lifting work such as preparing foundations,

alignment & grouting

• Pre-commissioning

• Equipment preservation

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Project Layout

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PROJECT DATES

Activity Date

LNG Train 1 QTR 4, 2014 to QTR 4, 2016

LNG Train 2 QTR 3, 2014 to QTR 2, 2016

A300 – Slug Catcher and Condensate

Stabilisation

QTR 3, 2014 to QTR 4, 2015

A600 – Onshore Pipeline QTR 3, 2014 to QTR 1, 2015

Practical Completion QTR 1, 2017

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AUSTRALIAN INDUSTRY PARTICIPATION

UGL Kentz Joint Venture:

• actively supports Australian Industry Participation (AIP) as a core principle

for the project;

• is committed to working constructively with Australian Industry;

• will provide full, fair and reasonable opportunity to Australian industry; and

• will ensure use of ICN Gateway to communicate subcontracting and

supplier opportunities

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AUSTRALIAN INDUSTRY PARTICIPATION

• Procurement / Contract Managers will be responsible for ensuring AIP

considerations throughout the Project’s Procurement/ Lower Tier

Subcontract requirements

• AIP will be considered as part of the commercial bid evaluation. Where bids

are assessed as being equal in all other respects and both commercially

and technically acceptable, preference will be given to the tenderer with AIP

qualifications

• To maximise local industry participation, sourcing will consider

o Darwin local area

o Northern Territory

o Interstate

o International

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ABORGINAL AND TORRES STRAIT ISLANDER (ATSI)

ENGAGEMENT • UGL Kentz JV will actively implement INPEX and JKC ATSI policy

• UGL Kentz JV will have a specific point of contact for ATSI engagement

(Ken Torrance & Damien Chisholm)

• UGL Kentz JV is using the JKC ATSI Business Register and ATSI business

assessments as a basis to identify and review the capability of ATSI

businesses to undertake specific Lower Tier Subcontracting (LTSC)

opportunities

• UGL Kentz JV will liaise with local ATSI groups, such as the NT Indigenous

Business Network.

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ABORGINAL AND TORRES STRAIT ISLANDER (ATSI)

ENGAGEMENT

• UGL Kentz JV actively supports engagement of ATSI people into the Lower

Tier Subcontractors on project works, and will:

o give ATSI people every opportunity to participate, including aiming to

source, train and develop local ATSI people

o provide workplace induction and training for ATSI people.

o provide cultural awareness training for non-ATSI employees.

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INDUSTRY CAPABILITY NETWORK (ICN).

• UGL Kentz JV are utilising ICN Gateway as a tool to communicate its

project needs.

• UGL Kentz JV has started uploading Scope of Works for LTSC and Supply

Packages seeking Expression Of Interest (EOI) on the ICN gateway.

• UGL Kentz JV will ensure sufficient duration is available for prospective

bidders to register their EOIs.

• Registrations can be for:

o Full scope (Tier 1): Capability to execute / supply total scope of

package works.

o Part scope (Tier 2): Capability to execute / supply partial scope of

package works

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INDUSTRY CAPABILITY NETWORK (ICN).

• Express interest against the specific packages on ICN gateway.

www.mec1.icn.org.au

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PROJECT REQUIREMENTS :Health, Safety,

Environment and Quality

• Health Safety Security & Environment (HSSE) is integral to everything UGL

Kentz JV does.

• UGL Kentz JV promotes an injury-free environment and works on the basis

that all injury and damage is preventable.

• All Safety, Quality and Environmental management systems accredited to

ISO certifications.

• UGL Kentz JV will ensure that they and all their Lower Tier Subcontractors

are compliant with JKC guidelines on site specific additional Safety, Quality

and Environmental requirements.

• Safety management plan, Quality management plan and Environmental

management plan all specifically designed for the project

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EXAMPLES OF LOWER TIER SUBCONTRACT /

SUPPLIER PACKAGES

• UGL Kentz JV will primarily self-perform the majority of the works however

the potential vendor, service provider, and lower tier subcontract

opportunities currently identified includes:

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PACKAGE DESCRIPTION

Piping Testing and Flushing Hydro static and Pneumatic testing

of piping

Non Destructive Testing Non Destructive testing of pipe

welds

Post Weld Heat Treatment Heat treatment of pipe welds

Flange Management

Services/Training

Provision of bolt tensioning and

flange management services



SUPPLIER PACKAGES

PACKAGE DESCRIPTION

Vessel Internals Installation of vessel internal platforms,

sprays, demisters etc

Refractory Installation of refractory to vessels and

stacks

Exterior Finishing Installation of Building Wall and Roof

cladding

Lube Oil Flushing Lube oil flushing of lube oil piping and

equipment systems

Grouting Supply and Installation of Grouting for

structural and mechanical equipment

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SUPPLIER PACKAGES

PACKAGE DESCRIPTION

Surveying Provision of construction surveying

Temporary Fuel Facility Supply of a temporary fuel storage

facility for site works

Temporary Site Offices and other

Facilities

Provision of temporary site offices and

other facilities for the construction

works

Provision of Temporary Site Services –

Civil, Plumbing, Electrical, Carpentry

Provision of services to complete set-

up of temporary offices and

construction facilities

Plant and Equipment Hire – Crane

Hire

Dry hire of cranes for the construction

works

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SUPPLIER PACKAGES

PACKAGE DESCRIPTION

Support Labour Hire Provision of labour hire to supplement

construction workforce

Site Trainer - VOCs Provision of services to verify

workforce competency in trade skills

and the operation of construction

equipment

Site Trainer - Laser Alignment Provision of training to instruct

employees on laser alignment of

mechanical equipment

Drug and Alcohol Testing Provision of drug and alcohol testing

of employees

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SUPPLIER PACKAGES

PACKAGE DESCRIPTION

Safe Spine Course Providers Provision of Safe Spine Training

course for employees.

Water / Noise Testing Provision of Water and Noise testing

services for construction works

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LOWER TIER SUBCONTRACTOR (LTSC) / SUPPLIER

SELECTION PROCESS

• Brief Scope of Work for package listed on ICN Gateway

• Prospective LTSC / Suppliers to express interest for specific packages.

• The LTSC / Suppliers are evaluated by ICN

• The LTSC / Suppliers are then assessed by UGL Kentz JV broadly based

on: (not necessary in the same order)

o Safety, Environmental and Quality capability evaluation.

o Technical capability evaluation.

o Previous similar project experience.

o Resource capacity.

o Extent of value adding in Australia.

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SELECTION PROCESS

• Request for expression of interest (REOI) will be issued to the shortlisted

LTSC/ Suppliers.

• REOI will contain confidentiality agreement, specifications, drawings, draft

terms and conditions and project specific requirements.

• The responses to REOI will be evaluated for work specific technical

capabilities, resource capabilities, compliance to site requirements, IR

compliance and reference checks.

• A shortlist of LTSC/ Suppliers will be generated and issued a complete

tender package enquiry.

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SELECTION PROCESS – Tender.

• Tender packages issued to shortlisted LTSC / Suppliers containing;

o Tender invitation letter

o Scope of work

o Contract conditions including site specific conditions

o Technical specifications

o Related drawings, maps, plans as required

o Construction schedule

• Pre-Bid meetings, if required

• UGL Kentz JV reviews the tender submission

• Post-Bid meetings, if required

• Awards of Lower Tier Subcontract / Supplier package

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SELECTION PROCESS – Key Considerations

• Ability to meet AIP requirements.

• Ability to meet or better HSES requirements.

• Ability to meet schedule timeframe.

• Methodology proposal.

• Acceptance of Commercial Terms and Conditions including project specific

requirements.

• Ability to meet quality and technical / regulation standards.

• Price.

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LNG UTILITIES

AND

OFF-SITE AREAS

(MEC-2)

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LNG UTILITIES AND OFF-SITE AREAS (MEC-2)

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Agenda

• Introduction

• Meet the Team

• MEC-2 Scope & Program

• Major LTSC Packages & Program

• Expression of Interest

• Health, Safety, Environment and Quality

• Australia Industry Participation (AIP)

• Aboriginal and Torres Strait Islander Engagement (ATSI)

• Questions & Discussion

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Monadelphous Engineering Associates

Australian Company: Top 100 ASX

Our Business: A leading engineering group providing construction,

maintenance and industrial services in the

resources, energy and infrastructure sectors.

Our Aim: To build, maintain and support customer

operations through safe, reliable, innovative

and cost effective service solutions

Our Core Values: Safety and Wellbeing

Integrity

Achievement

Teamwork

Loyalty

Main Offices: Perth and Brisbane

Other Offices: Karratha, Darwin, Gladstone, Newman, Roxby

Downs and Mt Isa

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Meet the Team

• Project Manager: John Bennett

• Technical Services Manager: Ravi Iyengar

• Contracts Manager: Rod Perkins

• Snr Indigenous Program Advisor: Rob Allen

• LTSC Coordinator: Nilesh Sheth

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MEC-2 Works Scope Summary

• SMP Offsite & Utilities Key Areas:

» Module Offloading Facility (MOF) support

» Interconnecting Pipe Racks

» LNG Jetty

» Boil Off Gas

» Flares

» Utilities Areas

» LNG/LPG Storage

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Common Utility

Pipe rack Southside

Pipe rack Train side

Tankage Flare

LPG Tank

LPG BOG

Compressor

Pipe rack Tankage

side

LNG BOG

Compressor Drainage & Effluent Treatment

Condensate Tank

LNG Tank

LNG Loading Facility

LPG/Condensate Facility

Jetty Structure

Flare

Utilities Annex

Infrastructure

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• Provision of:

» temporary facilities

» management, supervision & labour

» plant & equipment

• Installation of:

» structural steel

» mechanical equipment

» pipework

• Commissioning assistance of:

» mechanical equipment

» pipework

• Supply misc materials, consumables & services

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• Approximate quantities:

» 3,000Te Stick Built Steel Work

» 53,000 Dia Inch Site Welds

» 29,000M Stick Built Pipe Work

» 140 Equipment Items to Install

• Direct Manpower ~850 persons

• Indirect Manpower ~200 persons

• 22 Month Sub Contract Duration

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MEC-2 Works Program

• Project Award: 20th Feb 2014

• Pre-mobilisation & mobilisation: 2nd Quarter 2014

• Work Commencement: 3rd Quarter 2014

• Completion of Mechanical Assembly / Install: 4th Quarter 2015

• Completion of Piping and Pressure testing: 4th Quarter 2015

• Project Completion: 1st Quarter 2016

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Major LTSC Work Packages

Available Packages Scope Description

Vessel Internals Installation Assembly & installation of vessel internals

Grouting Supply & site installation of non-shrink grout

Catalyst Loading Loading of catalyst & powder materials including

metal & ceramic packing

Lube Oil Flushing Lube oil flushing services of rotary equipment

NDT Services Site non-destructive testing services

PWHT Services Site post weld heat treatment services

Pipe Spool Testing &

Cleaning

Pneumatic testing, water jet & air blow cleaning

services of pipe spools

Ceramic Fibre Installation Installation of refractory ceramic fibre module

Valve Testing Testing services of manual, control & PR valves

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Major LTSC Work Packages

Available Packages Anticipated Start Date Anticipated Finish

Date

Vessel Internals Installation Apr 2015 Jul 2015

Grouting Jul 2014 Aug 2015

Catalyst Loading Nov 2014 Feb 2015

Lube Oil flushing Apr 2015 Oct 2015

NDT Services Jul 2014 Oct 2015

PWHT Services Jul 2014 Oct 2015

Pipe Spool Testing &

Cleaning

Oct 2014 Dec 2015

Ceramic Fibre Installation Mar 2015 Jun 2015

Valve Testing Jan 2015 Aug 2015

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Opportunities - Other

• All permanent materials and equipment are Client supplied except

miscellaneous items such as:

» shims

» grout

• Other potential opportunities, during the construction phase, are for

miscellaneous items and services such as:

» Site operating consumables

» P&E hire (i.e. lighting towers, EWP, generators etc)

» Miscellaneous plumbing services

» Miscellaneous electrical services

» A/C maintenance services

» Surveying services

» Fire safety certification services etc ….

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Expression of Interest

• What you need to do:

» Maintain & update your

ICN profile with the

Industry Capability

Network (ICN)

» Express interest against

the specific subcontract

package on ICN Gateway

(www.mec2.icn.org.au)

» Respond to questions &

complete documents

requested by ICN

» Major packages will be

listed on ICN Gateway

(ICN to be consulted on

minor packages)

http://www.mec2.icn.org.au/

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Prequalification and Tender • Prequalification process (where applicable):

» Confidentiality Agreement

» Prequalification Questionnaires

o HSES

o Experience

o Financials

o Capability

o AIP and ATSI Component

o Deeds/Insurances

• Tender process (where applicable):

» Pricing

» Schedule

» Specifications

» HSES

• Client approval

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HSES and Quality

• The Site has stringent requirements and expectations for Health,

Safety, Environment, Security and Quality.

• Monadelphous maintains ISO & AS/NZS accreditation for safety,

quality and environmental management systems

• All LTSC onsite are required to comply with the Site work practices and

procedures established by Monadelphous and JKC.

• Monadelphous’ philosophy is that an Injury and Incident Free

workplace is achievable through:

• Effective leadership and workforce engagement

• Behavioural Based Safety

• Training and Competency

• Planning and Risk Assessment

‘The Safe Way is the Only Way’

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Australian Industry Participation “Provide full, fair and reasonable opportunity for Australian industry to

contribute to Ichthys Project activities and maximise Australian Industry

Participation where competitively possible, based on health, safety and

environment, schedule, quality and cost.”

• Monadelphous supports Australian Industry Participation (AIP) as a

core principal of providing ‘full, fair and reasonable’ opportunity

• The project and its contractors, subcontractors & LTSC are required to

actively support AIP.

• To ensure maximum opportunities for local industry participation,

sourcing will considered based on the following:

» Local area (Darwin)

» Local territory (Northern Territory of Australia)

» Interstate; and

» International

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ATSI Engagement

“To work with Aboriginal and Torres Strait Islander (ATSI) people and

communities wherever we are active in Australia with the aim of building

sustainable mutually beneficial relationships.”

• Monadelphous supports engagement of ATSI people and businesses

on the Project and will:

» consult with ICNNT and JKC ATSI Business Register to identify

ATSI businesses & explore subcontracting opportunities with

these ATSI businesses

» ensure all personnel and LTSC are aware of their obligations

with respect to ATSI employment opportunities on the project

» through initiatives in our ATSI Employment and Engagement

Plan give ATSI people every opportunity to participate, including

aiming to source, train and develop local ATSI people

» provide workplace induction training for all employees

» provide cultural awareness training for non-ATSI employees

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Questions & Discussion

UGL Kentz JV team

• Deputy Project Manager: Carlo

Macchiusi

• Construction Manager: Mark Dimasi

• Country Indigenous Development

Manager: Ken Torrance

• Procurement/Contracts Engineer:

Yannick Vallet

• Procurement Manager: Murray King

Monadelphous team

• Project Manager: John Bennett

• Technical Services Manager: Ravi Iyengar

• Contracts Manager: Rod Perkins

• Snr Indigenous Program Advisor: Rob Allen

• LTSC Coordinator: Nilesh Sheth

INDUSTRY BRIEFING MECHANICAL WORKS FOR PROCESS AND …

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