JGC Corp. has reached an agreement for cooperation relating to projects that adopt the module method and concluded the five-year strategic cooperation agreement with Offshore Oil Engineering Co. Ltd., the company said on April 27.

Both companies will cooperate in relation to new orders for oil, gas and chemical plants that adopt the module method as well as FPSO facilities such as FLNG.

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 generally used even for FPSO facilities adopted for deep sea oil and gas resource developments.

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 FPSO facilities.

In addition, high labor costs are a constraint on realizing projects in the U.S., 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 cooperation 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.

Offshore