With an estimated $200 billion-plus in LNG capex projects underway in the United States, EnerMech believes it can increase its market share Stateside by capitalising on its wide-ranging experience of big ticket Australian LNG projects.
Operational expertise and extensive customer relationships developed through the build-out of large scale Australian LNG infrastructure projects has provided a US market-entry advantage for EnerMech, which employs 3500 staff globally.
Through 2018 and into 2019 EnerMech, the integrated mechanical and electrical services specialist, had personnel onsite at four US LNG facilities, (Freeport LNG, Cameron LNG, Elba Island and Corpus Christi).
While recognising the customer base is different, Mark Duncan, EnerMech’s Senior Vice President Americas, believes investment in equipment, strategic bases and high quality people, will help extend initial pre-commissioning work in to operations and maintenance contracts.
He said: “Market activity in LNG, mid-stream, downstream and petrochemical plants in the US is increasing and we are pursuing a large amount of project work for 2019 through to 2022. Our integrated services capability is a major advantage over competitors and we are seeing interest from our customers in both the construction and operations and maintenance areas.”
The rollcall of Australian projects undertaken by EnerMech encompasses every major LNG development, from Woodside, Chevron’s Gorgon and Wheatstone, Inpex Ichthys to Curtis Island’s QCLNG, GLNG and APLNG, and covers construction, pre-commissioning and commissioning, shutdown and maintenance phases.
EnerMech Australia General Manager, Michael Smith, is confident the foundations are in place for building on existing LNG relationships and rolling out EnerMech’s wider services portfolio to clients.
He said: “This has been a major focus and we continue to drive and share innovation whilst promoting collaboration across the business lines. Our “One EnerMech” approach to clients means we have incorporated a number of additional services from complete mechanical, electrical and instrumentation services, valve supply, maintenance, repair and overhaul, and more recently specialist maintenance, inspection and integrity capabilities, to our extensive and established offering.
“We are challenging the traditional contracting models, specifically around reducing the contractors footprint, and this approach has increased our market share with a number of major operators and we expect this to increase further as existing maintenance contracts are renewed.”
Australia’s current onshore LNG construction activities are transitioning into the operations and maintenance phase, however, there are a number of waves of investment required over the next 30 to 40 years to continue to feed these initial investments.
Michael added: “Over the next 10 years there is expected be in excess of $70 billion AUD invested in upstream greenfield developments, brownfield modifications and additional LNG trains in Australia and Papua New Guinea.
“EnerMech is already engaging with the full life cycle chain on all major projects, and we are well positioned to increase our market share in these new LNG projects due to our reputation in the industry, established track record, multiple services, geographical location and long term agreements in place with the operators.”