3pm, 18 December 2014, Brisbane: CPEC (AUS) has completed the first shutdown and revamp for Arrow Daandine Expansion Project (DDEXP), with Joint Venture partner, WDS Limited.

The Daandine Expansion Project contract was awarded and signed in July 2014, and the contract is compensation contract with a total value of $60 million. The overall project schedule is 17 months and is to be executed in two phases. Phase 1 is from July to December 2014, and the main project scope consists of installation of low pressure flares, high pressure reliefs, inlet separations, utilities and related civil works. The first shutdown and test run is planned in the end of the year.

Due to the delay of detailed engineering by EPCm contractor and the delay of some material delivery, it leads to a decrease in effective construction window from 4 months to 3 months. In order to ensure the first shutdown and tie in successful, CPEC (AUS) worked closely with the JV partner to develop systematic and detailed implementation plans, proactively solved issues caused by design and materials delivery. By 16th December, the first shutdown and revamp planned work items have been successfully completed, two days earlier than the schedule. And the tie in was flawlessly completed on 18th December.

The successful implementation of this project is of great significance for both Arrow Energy and the JV. Arrow Energy is taking this project as a next step experimental project for future LNG project investment. The success of this project will directly impact Arrow’s business decision on EPCm project management model and future investment. This project is also a real challenge to test the JV’s overall capacity and capability, as the central treatment plant is the most complicated facility among Coal Seam Gas (CSG) development engineering projects. The successful implementation of this project marks the JV is fully capable of undertaking all Arrow Energy upstream projects.

Next, CPEC (AUS) will make persistent effort and careful planning to organize the implementation of the second shutdown and to lay a solid foundation for Arrow Energy’s future LNG integration strategy.