Offers are due in next month for small-scale LNG import infrastructure proposals for a project in the French territory of New Caledonia in the South Pacific.
Those working on the business said about 40,000-cbm of LNG storage is needed to supply French multinational mining and metallurgy company Eramet’s heavy-fuel electric power plant in Doniambo,close to the territory’s capital Noumea on the island of Grande Terre.
The power facility, which is due to be operational by 2023 to 2024, will supply an aluminium plant run by Eramet’s nickel producer SLN.
Seeking solutions
They said a wealth of concepts are likely to be on the table, including using small-scale floating storage and regasification, floating storage, regasification and power unit, and a gravity-based structure that houses storage and regas modules.
Barge-based elements may provide one solution as there are issues to consider relating to coral reefs around the islands and the accessibility for vessels.
New Caledonia, which has a population of just over 285,000, is famed for its 24,000 square kilometre (9,260 square mile) marine lagoon — one of the world’s largest — and the huge barrier reef, which surrounds the main island of Grand Terre.
The territory attracts scuba divers and the move to gas is aimed at helping preserve its natural environment.
SLN said the new power plant will improve sulphur and carbon dioxide emissions and allow it to reduce its production costs, which are heavily affected by one of the most expensive energy prices in the world.
The project, which has been on the table for some time, acquired fresh traction when the French government backed it with €320m ($352m) in funding.
Slated timeline
Offers are due in on the business by the end of June. A shortlist of bidders will be drawn up by August, with a preferred company and concept to be selected by November and contracts slated to be signed in 2021.
Companies said the enquiry is clearly organised and there is more hope that the business will be concluded this time, as it is effectively guaranteed by the French state.
Earlier enquiry documents circulated last year showed developer Nouvelle-Caledonie Energie — a tie-up between government, domestic electricity producer, grid operator and SLN — offering a 15-year contract for the LNG supply and regasification contract.
Market observers said that while the LNG volumes required would be small, cargoes could be supplied in parcels from producers in countries such as Australia, Papua New Guinea and Indonesia.
Poten & Partners and France’s Sofresid Engineering handled the draft concept stages of the project.
