A consortium led by Coastoil Dynamic (CD), a joint-venture (JV) company of Costal Contracts, has won a contract for construction of a gas conditioning plant in Mexico.
The contract is valued at $1.08bn (RM4.5bn).
CD has signed a service agreement with Pemex Exploracion and Produccion, reported The Edge Markets.
Pemex Exploracion and Produccion is a subsidiary of Mexican state-owned petroleum company Petroleos Mexicanos.
Under this agreement, CD will be responsible for undertaking an onshore gas conditioning plant project, EMC Papan Plant.
The EMC Papan Plant, with a capacity of 300 million standard cubic feet per day (MMSCFD), will be located on the Ixachi Field, Tierra Blanca, Veracruz, Mexico.
As per the bourse filing, the contract involves engineering, procurement, construction, operation and maintenance of the gas conditioning plant and its associated infrastructure.
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This contract has a firm period of 3,902 days, which features 250 days of construction period and 10 years of operation and maintenance period.
This facility is expected to begin operations by Q1 of the financial year ending 20 June 2023.
Coastal Contracts stated that through CD, it is venturing into the Mexico onshore gas conditioning plant project along with its business partner Nuvoil.
A Mexican company, Nuvoil has over two decades of experience in engineering, procurement, construction, operation and maintenance of onshore gas plants in Mexico.
CD’s first gas conditioning facility, named Perdiz Plant, commenced operations in July this year and has capacity of 180 MMSCFD.
With the completion of the EMC Papan Plant, CD would have a total gas conditioning plant capacity of 480 MMSCFD.
Coastal Contracts executive chairman Ng Chin Heng said: “We are delighted to have secured the second onshore gas conditioning contract on the Ixachi Field in Mexico. Coastal has set foot in Mexico since the year 2013 when Coastal first signed the bareboat charter agreement for Agosto 12, a jack-up gas compression service unit of Pemex. Agosto 12 currently in its sixth year working for Pemex on the Cantarell Field. Over the years, our mutual trust working relationship with Nuvoil has created synergy for both parties to venture into onshore gas plant projects in Mexico.”
Image: This facility is expected to begin operations by Q1 of FY2023. Credit: SatyaPrem from Pixabay.