Posco International signs FEED deal with McDermott for Myanmar Shwe gas field project
Posco International Corp., the trading unit of South Korean steel giant Posco, signed a front-end engineering design (FEED) contract with American energy company McDermott International on Saturday (local time) in the U.S. for the third stage project of the Shwe gas field development in Myanmar, the company announced Sunday. The company last month picked McDermott and Korean shipbuilder Hyundai Heavy Industries to assign basic designing works such as building a new compression platform and bridge link and redesigning existing platforms. It will select one of the two firms next month who will conduct engineering, procurement, construction, installation and commissioning (EPCIC) works for the project.The company’s offshore gas field exploring project in Myanmar first began in 2000 and it started commercial production in the field in 2013. It currently has been conducting the second stage works for the total three-phase Shwe gas project consisting of the Shew, Shwe Phyu and Mya offshore gas field development. It aims to begin commercial production at the Shwe gas field in 2021 and Shwe Phyu field in 2022.
The brisk sales of natural gas from the gas fields have boosted earnings of Posco International. The company posted a 135.7 percent year-on-year surge in operating profit in the third quarter ended September to 163.3 billion won ($140.7 million), recording more than 160 billion won in operating profit for three consecutive quarters this year.
The company will complete a liquefied natural gas (LNG) value chain that is responsible for every procedure from production, liquefaction and transport to sales after finishing the Myanmar gas field project, one of the 100 goals of Posco Group.