News Releases 2018

Apr. 27, 2018

JGC Agrees on Strategic Co-operation with COOEC of China

Addresses the Growing Number of Module Method Projects

JGC Corporation announced today that it has reached an agreement for co-operation relating to projects that adopt the module method and concluded the five-year "Strategic Co-operation Agreement" with Offshore Oil Engineering Co., Ltd. (hereinafter referred to as COOEC) on April 17, 2018.

Both companies will co-operate in relation to new orders for oil, gas and chemical plants that adopt the module method as well as floating production, storage and offloading facilities such as FLNG and FPSO.

1. Module Method

This is a method of separating plants into multiple functional units that are fabricated in a third country other than the final construction location, with assembly of one plant at the final construction location after transporting the units by a large ship. This enables the minimization of construction work at the final construction location, which is the trump card for materializing plant construction projects in locations with severe natural conditions and high construction costs.

In addition, the method of fabricating each functional unit for topside facilities as modules with each module ultimately connected over the hull is genearlly used even for floating production, storage and offloading facilities adopted for deep sea oil and gas resource developments.

2. Both Companies’ Track Record

JGC is a world leader in know-how and track record for adopting the module method for large-scale plant construction projects such as the full-scale implementation of the module method for the Gorgon LNG project in Australia, the Ichthys LNG project in Australia and the Yamal LNG project in Russia. In addition, even for floating production, storage and offloading facilities, JGC has the world‘s top class track record in the FLNG area, which is especially difficult technically.

COOEC has multiple large-scale module yards in China and is highly regarded worldwide for its abundant track record, high quality and delivery management capacity for module fabrication such as the fabrication of high quality products delivered on schedule for large-scale LNG projects implemented by JGC.

3. Aim of Co-operation

There is a growing trend for projects requiring the adoption of the module method, such as projects involving difficult construction work because of locations with challenging natural environments and regions where it is difficult to secure workers, as well as floating production, storage and offloading facilities.

In addition, high labor costs are a constraint on realizing projects in the US, where there have been many plans to construct large-scale LNG and petrochemical plants since the shale revolution, and the adoption of the module method to minimize the construction work at the construction location is an effective measure.

Through co-operation with COOEC under this Agreement and other policy measures, JGC will organize solid and competitive project implementation formation using reliable module fabrication and intends to proactively address the growing trend for projects that adopt the module method.

For Reference

  • COOEC: Offshore Oil Engineering Co., Ltd.
    An offshore engineering company, which is a group company of Chinese National Offshore Oil Company, one of the three largest oil company in China. COOEC has several large-size module fabrication yards in China.
    Headquarter: Tianjin, China
    Group employee: 8,000
  • FLNG: Floating Liquified Natural Gas (Floating Production, Storage and Offloading Facility)
  • FPSO: Floating (Oil and Gas) Production, Storage and Offloading Facility