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ShawCor receives second contract to provide pipeline coatings for the Ichthys LNG Project

July 2, 2012

ShawCor Ltd. announced that its pipecoating division, Bredero Shaw, has received a contract with a value in excess $100 million from McDermott Australia Pty. Ltd. to provide pipeline coatings and related products and services for the flowlines and tie-in spools for the Ichthys LNG Project. This is the second contract Bredero Shaw has received for the Ichthys LNG Project and is in addition to the contract for the gas export pipeline announced on February 14, 2012.

The Ichthys LNG Project is a Joint Venture between INPEX (Operator) and Total. Gas from the Ichthys Field, in the Browse Basin approximately 200 km offshore Western Australia, will be gathered using the risers and flowlines and will undergo preliminary processing at the offshore central processing facility to remove water and extract condensate. The gas will then be exported via an 889 km subsea pipeline to the onshore LNG facility to be located at Blaydin Point, Darwin, Northern Australia. The Ichthys LNG Project is expected to produce 8.4 million tons of LNG and 1.6 million tons of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

The contract involves coating approximately 148 km of six-inch to 18-inch diameter pipe that will be protected with three-layer polypropylene anticorrosion coating and Thermotite multi-layer polypropylene insulation. Work will commence during the second quarter of 2013. The company will execute the work at Bredero Shaw's facilities in Kabil, Indonesia and Kuantan, Malaysia. The Kabil and Kuantan facilities are technology-based, full service coating plants that were built specifically to process large, complex projects in the Asia Pacific region.

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