The massive shale oil and gas expansion across the United States, and South Texas in particular, is dramatically changing the domestic energy and economic landscapes. Last year, the United States ranked number one in worldwide natural gas production, reaching a new all-time high production volume of 328 billion cubic feet per day (BCFD).
The increased natural gas production has, in turn, created a demand for facilities where this natural gas can be liquefied for export to other countries.
FREEPORT LNG SECURES REGULATORY APPROVALS
Against this backdrop in the fall, the Federal Energy Regulatory Commission (FERC) granted Freeport LNG (FLNG) final authorization to proceed with construction of a three-train liquefaction facility on Quintana Island next to Freeport, Texas. About the same time, the Department of Energy (DOE) granted final authorization to FLNG to export liquefied natural gas (LNG) to non-Free Trade Agreement countries.
Zachry is part of a joint venture with CB&I that will perform engineering, procurement and construction (EPC) services in delivering the first two trains of this project. Japanese engineering firm Chiyoda will join the Zachry-CB&I joint venture in developing the third train of the project.
ALL ABOUT RELATIONSHIPS
FLNG turned to Zachry to get the job done because of its trust in the company. Their strong relationship first developed from 2005 through 2008 when Zachry constructed a regasification terminal for FLNG that’s adjacent to the new liquefaction project site.
“This contract is the direct result of our work on that original project and the relationships we enjoy with FLNG,” said Senior Vice President and Director of Projects Steve Dedman. “We work well together and value the importance of that as we engage in a project of this magnitude.”
CAREER ADVANCEMENT AND JOB CONTINUITY
“This is a ‘project of choice’ and the type of project upon which careers are built and career paths advanced, and we are excited to have this opportunity available to our employees,” Joint Venture Project Executive Chet Lloyd said.
When the project peaks, there will be approximately 3,000 craft workers; 500 supervisors, clerical staff and inspectors; 500 subcontractors; and around 400 engineering employees working on it directly.
“For craft workers in particular, the project presents a longer continuity of employment in one area than they are accustomed to,” says Ralph Biediger, Construction Group President. “And not just because of the expanded size and duration of this project alone, but also because of the other two large projects Zachry is executing in Brazoria County.”
Those projects, for Chevron Phillips Chemical Company and Phillips 66, mean that when Zachry begins pouring foundations on the FLNG project in 2016, the company will already have hired more than 2,000 skilled craft workers in the immediate vicinity.
“This is an attractive situation for craft workers who will move from the CPC (Chevron Phillips Chemical) job to the Phillips job, and from there, to FLNG, for what will amount to five or six consecutive years of employment,” Biediger said. “It also gives us a major advantage to work with supervisors and craft workers who understand our processes and know how to work safely.”
This blog is an excerpt from the March/April 2015 edition of the Force Report.