JGC Holdings Corporation announced that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, and JGC Arabia as a Saudi Arabian subsidary of the JGC Group, have jointly been awarded by Saudi Aramco the EPC contract for the Zuluf AH Increment Central Processing Facilities.
Saudi Aramco is promoting the Zuluf Arab Heavy Development Program to meet growing global energy demand and is planning to increase production based on an additional 600 MBCD of AH crude.
JGC has received the orders for the construction projects for the core onshore GOSP and Utility Facilities including Water Injection Facilities.
In winning this order, in addition to the relationship of trust with Saudi Aramco founded on our track record of successfully executing projects in Saudi Arabia, the project execution plan to simultaneously execute the two packages of onshore GOSP and Utility Facilities was highly evaluated.
Going forward, the JGC Group will continue to aim to win orders for projects planned by Saudi Aramco, realizing job creation and technology transfer to many Saudi Arabians through the execution of such projects, thereby contributing to the further development of the Kingdom of Saudi Arabia.
JGC Holdings Corporation and Toyo Engineering Corporation announce that the two companies have signed an alliance agreement related to the receipt of orders and execution of engineering, procurement, and construction (EPC) projects for fuel-ammonia manufacturing plants and ammonia receiving terminals, starting from feasibility studies (FS) and front-end engineering design (FEED).
In October 2020, the Japanese government declared its goal of realizing carbon neutrality by 2050. Fuel ammonia shows promise as a decarbonized fuel for power generation, shipping, etc. The government has therefore set expanded implementation targets of 3 million tons per year as of 2030 and 30 million tons per year as of 2050. Accordingly, various companies and organizations both in Japan and overseas have launched initiatives aimed at the manufacturing, transport and use of fuel ammonia.
In response to this move toward the expanded use of fuel ammonia, the JGC Group and the TOYO Group reached an alliance agreement with the aim of speedily demonstrating to fuel ammonia business operators enhanced proposal capabilities and competitiveness by combining the JGC Group’s extensive record of constructing process plants in regions such as Australia and the Middle East with the TOYO Group’s extensive track record and technical expertise in ammonia manufacturing plants, integrating efforts from the conceptual stage to EPC.
A coalition of the Japanese government and companies is expected to play a key role in the fuel ammonia business in the future. The JGC Group and the TOYO Group will jointly pursue business operations and project execution related to the evaluation, planning, engineering, procurement and construction of fuel ammonia manufacturing-related facilities around the world, including for overseas companies.
Through the expanded use of fuel ammonia, the two Groups will contribute to the realization of a decarbonized society.
JGC Holdings Corporation (Representative Director, Chairman and CEO Masayuki Sato) announced that JGC America, Inc., its 100% owned affiliate in United States, together with joint venture partner Zachry Industrial, Inc. (JZJV), has been awarded a Front End Engineering Design (FEED) and Engineering, Procurement and Construction (EPC) Bid Agreement contract for the Cameron LNG Liquefied Natural Gas (LNG) expansion project located in Cameron Parish, Louisiana, under a competitive dual FEED process.
Currently Cameron LNG operates three natural gas liquefaction trains (annual production of approx. 12 million tons). The expansion project is aimed to enlarge production capacity by adding a fourth train (maximum annual production of approx. 6.75 million tons) to the existing trains utilizing electric drive (E-drive) motors. Usage of E-drive instead of gas turbine drives, is expected to allow for significant reduction in carbon emissions.
JZJV will be responsible for the FEED design work as well as submission of an EPC bid.
Amid the rapid global trend toward low-carbon and decarbonization, LNG, which has less environmental impact than other fossil fuels, plays an extremely important role in promoting energy transitions. JGC has been responsible for executing LNG plants that account for approximately 30% of global LNG production. Currently, JGC is executing two LNG projects, including LNG Canada and a FLNG (Floating LNG) plant off the coast of Mozambique.
As a top LNG contractor in the field of LNG, JGC will continue to lead the industry through its strong business activities and respond to the growing demand of electric drive (E-drive) motors.
JGC Holdings Corporation, in a consortium that includes leading Taiwanese construction firm RSEA Engineering Corporation, Taiwan’s Do & Find Engineering Consultants and another company, has been awarded a contract for construction of LNG terminal facilities from state-owned oil and gas company CPC Corporation.
The project calls for engineering, procurement, construction, and commissioning (EPCC) services for Kaohsiung-based CPC Corporation, which will involve construction of eight LNG vaporizers and associated facilities in Taichung. This is a lump-sum contract for approximately 60 billion yen, with the JGC portion being nearly 34 billion yen. Delivery is scheduled for 2024.
Current energy policy in Taiwan seeks to end nuclear power generation and phase out coal-fired power while actively introducing clean energy sources such as liquefied natural gas (LNG) and renewable energy. To this end, the project will expand the existing Taichung LNG receiving terminal and add the new terminal being constructed. Specifically, the consortium has been contracted to build eight vaporizers (with a total capacity of 1,600 tons per hour) and ancillary facilities at the LNG receiving terminal.
Compelling factors that may have led to this order by CPC included technical proposal capabilities meeting client needs, project execution planning that ensures quality, safety, and fast turnaround, and a project execution framework that maximizes each company’s considerable experience.
Taiwan plans to increase power generation fueled by natural gas to 50% of the island’s total power generation by 2025, up from about 30% at present. This commitment is reflected in the active expansion of LNG imports and storage capacity by CPC and Taiwan Power Company (TPC). Construction of several new LNG receiving terminals is also planned. After successful completion of this project, the JGC Group will pursue subsequent projects here.
The JGC Group has positioned LNG receiving terminals in the Asian region as a growth segment and market for EPC business, as outlined in the medium-term business plan (BSP 2025). Building on this project, we will work to secure other new orders, as we contribute to global environmental conservation through expanded use of LNG.
JGC Holdings Corporation (Representative Director, Chairman and Chief Executive Officer: Masayuki Sato) announced that JGC Philippines, Inc. has been awarded the Engineering, Procurement and Construction (EPC) contract of a mega solar power plant generation project with 94MWdc capacity in Bugallon, Pangasinan, Philippines for Aboitiz Power Corporation, through a special-purpose vehicle wholly owned by the company’s subsidiary Aboitiz Renewables, Inc. (ARI)
A large number of renewable energy projects are under development in the Philippines due to the Philippine government’s introduction of Renewable Portfolio Standards (RPS), a market-based policy that mandates electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources Aboitiz Power, leading power producer in the Philippines, is targeting to expand its total power generation capacity to 9,200 MW by 2030, half of which will come from various renewable energy sources.
This project is recognized as the first solar power plant generation project developed by AboitizPower in Luzon. The firm will continue to develop more renewable power plant projects over the next 10 years to contribute to supporting the energy transition in the country.
JGC Philippines, fully owned by JGC Group, has executed EPC and Operation & Maintenance (O&M) services for a variety of facilities in the Philippines for over 30 years. The awarding of this project is the result of the JGC Group’s extensive experience in EPC execution of solar power plants as well as JGC Philippines’ extensive project execution capability. JGC Philippines will make continuous effort to support our client’s needs related to power plant development especially renewable energy and LNG (liquefied natural gas) power generation.
JGC Group has set “Taking on EPC growth markets and segments” as one of the key strategies in its medium-term management plan “Building a Sustainable Planetary Infrastructure 2025（BSP2025）.” JGC Group will strengthen our regional management structure and execute future projects closely together with local clients to leverage local resources in the region.
JGC Holdings Corporation (Representative Director, Chairman and CEO Masayuki Sato) announced that JGC Corporation (Representative Director and President Yutaka Yamazaki), which operates the overseas Engineering, Procurement, and Construction (EPC) business of the JGC Group, together with consortium partner Samsung Heavy Industries (SHI), has been awarded the Front End Engineering Design (FEED) contract for a nearshore Floating Liquefied Natural Gas (FLNG) facility project in Malaysia planned by Petroliam Nasional Berhad (PETRONAS), the Malaysian state-owned oil and gas company.
In October 2021, PETRONAS called for a FEED competition of a nearshore FLNG facility with a minimum production capacity of 2 million tons of LNG per annum using feed gas supplied via an existing pipeline from offshore gas fields in Sabah, Malaysia.
JGC will be responsible for the engineering work for the FLNG topside as well as the management of the overall project whereas SHI will be responsible for the FLNG hull engineering work. Upon completion of the FEED competition, the EPC contract will be awarded by PETRONAS, subject to Final Investment Decision (FID), to the successful contractor.
Since the 1980’s, the JGC Group has executed EPC projects for all nine trains of the LNG plants at PETRONAS LNG Complex in Bintulu, Sarawak that has an annual production capacity of approximately 29 million tons per annum. In recent years, the Group has been working with PETRONAS to improve the productivity of these plants. Furthermore, JGC-SHI was also the consortium behind the development of PETRONAS’ second FLNG facility, PFLNG Dua, which is the world’s first deep-water FLNG facility currently in production.
For this present project, JGC Group aims to leverage on its extensive track record in plant construction and strong relationship of trust with PETRONAS to compete for the award of the EPC contract.
JGC Holdings Corporation announces that JGC Corporation, together with its local subsidiary JGC Vietnam, have been awarded the EPC contract of a solid dosage facility by Ha Tay Pharmaceutical Joint Stock Company in February 2021. The construction site is located in Thach That District, Hanoi City, Socialist Republic of Vietnam (about 35km west of Hanoi). The contract price is undisclosed.
This project is a solid dosage facility project planned by Ha Tay Pharmaceutical Joint Stock Company in the industrial park near Hanoi. The solid dosage facility will manufacture various solid dosage products, in compliance with PIC/S GMP as the international standard for pharmaceutical products. The production volume is expected to be approximately 2 billion tablets per year and execution of the project will promote the manufacture and distribution of high-quality pharmaceutical products in Vietnam.
In the bidding phase, the proven seamless project management of JGC Corporation and JGC Vietnam through their unified collaborative experience from design to construction, along with JGC Vietnam’s track record and capabilities in EPC execution in Vietnam, were highly evaluated. In addition, JGC’s proposal to improve productivity through an optimized plant layout that takes into consideration the flow line as well as the prevention of cross-contamination, based on extensive experience in the pharmaceutical industry in Japan and overseas, was highly evaluated.
In Southeast Asia, where the population continues to grow, the life sciences and medical industries are expected to rapidly expand, including pharmaceutical plants and hospitals. JGC Corporation will propose plant configurations that meet clients’ needs and budgets, providing services of optimal quality. JGC’s engineers will support clients starting from the initial conceptual stage and will contribute to the realization of business plans by promoting project execution with local production for local consumption, maximally drawing on the capabilities of JGC Vietnam and other local subsidiaries.
JGC Holdings Corporation announces that a consortium of JGC Corporation, NGK Insulators Ltd, and MCS International LLC has been awarded a contract for the construction of Mongolia’s first solar power generation project with a battery energy storage system, as well as O&M services, for the Ministry of Energy of Mongolia.
This project is part of the “Upscaling Renewable Energy Sector Project”, which aims to expand the use of renewable energy in Mongolia, a country that depends on coal-fired power generation for its electricity supply and where air pollution is a serious problem. The project will be financed by a loan from the Asian Development Bank, and the Joint Crediting Mechanism (JCM), which has been established by the Japanese Ministry of Environment at the Asian Development Bank. We will construct a solar power generation system with a capacity of 5MW, a battery energy storage system with a capacity of 3.6MWh, and an energy management system in Uliastai, Zavkhan Province, Mongolia by the spring of 2022.
By installing a solar power generation system equipped with an advanced battery energy storage system (BESS) and energy management system (EMS), it will be possible to use electricity derived from solar power generation day and night, thereby contributing to the improvement of energy security and the reduction of carbon dioxide emissions in Mongolia.
The awarding of this project is the result of the recognition of the JGC Group’s experience in the construction of solar power generation facilities and its ability to propose energy management solutions, the environmental resistance of NGK’s sodium sulfur batteries, and the construction performance of the local partner, MCS International. More renewable energy projects, including energy storage systems, are planned for Mongolia in the future, and JGC will promote further expansion of orders and contribute to the construction of clean social infrastructure in Mongolia and the Asian region.
As social momentum for the greening of the electric power industry accelerates, the JGC Group is working on the practical application of integration technologies for battery energy storage systems (BESS) and energy management systems (EMS), which will become indispensable as the introduction of renewable energies expands. We will continue to realize advanced power transmission infrastructure that is both economically rational and socially significant by proposing optimal energy management solutions that include not only power generation but also power storage and transmission.
JGC Holdings Corporation (Representative Director, Chairman and Chief Executive Officer: Masayuki Sato) is announcing that JGC Corporation, along with its subsidiary, JGC Vietnam were awarded the EPC contract of the Solar Power Generation Project by Sumitomo Corporation at the Thang Long Industrial Park II (TLIP II) in Hung Yen, Vietnam.
Sumitomo Corporation is promoting a green energy plan with the implementation of power supply facilities with several hundred megawatts of green electricity in their overseas industrial parks as well as beyond industrial parks, which includes the Thang Long Industrial Park I, II and III in Vietnam. This project will serve to supply green electricity to the tenant companies at the Thang Long Industrial Parks II. JGC Corporation, in partnership with JGC Vietnam, will execute the engineering, procurement, and construction (EPC) work for the approximately one megawatt solar power generation facility.
JGC has an abundant experience in the EPC execution of solar power generation projects in both domestic and overseas sites. The experience, combined with our ability to propose solutions that help to materialize the green energy plan promoted by Sumitomo Corporation, is seen as having been the major factor in the awarding of the contract to JGC. The JGC Group will continue to propose the best solutions to our clients from both economical and technical perspectives, and increase its orders for other projects.
The JGC Group believes that comprehensive energy management solutions, such as the integration of energy storage systems and existing facilities, as well as the introduction of virtual power plant (VPP) solutions, are essential to increase the capacity of renewable energy. We are now taking the following approaches with a focus on Southeast Asia and island countries.
Program planning and feasibility study proposals to decrease CO2 emission through the implementation of renewable energy and storage batteries in existing and new plants.
Business planning for micro grid businesses in island contries and off grid systems for industrial parks.
Consulting and cost estimation service for green energy implementation in existing businesses.
We believe that we can apply our technical expertise gained through our extensive engineering experience on plants and facilities on the energy-saving and energy management for production equipment and plants. The JGC Group will continue to contribute to the realization of a sustainable “environmentally friendly society” through our proactive initiatives in the environmental sector.
JGC Holdings Corporation announced that JGC Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, has been received the Letter of Award for the Basrah Refinery Upgrading Project for an Iraqi oil refining company under the Iraqi Ministry of Oil. Details of the project are as follows.
1. Client
South Refineries Company(Oil refining company under the Iraqi Ministry of Oil)
2. Construction location
Basrah, Republic of Iraq(Approx. 550 km SE of the capital of Baghdad)
3. Primary equipment(processing abilities)
Fluid catalytic cracking unit (34,500 barrels/day), vacuum distillation unit (55,000 barrels/day), diesel desulfurization unit (40,000 barrels/day), etc.
4. Contract services
Engineering, procurement, construction and commissioning
5. Contract type
Lump sum contract
6. Order amount
Approx. 400 billion JPY
7. Scheduled completion
2025
Iraq is one of the world’s leading oil-producing countries, with a confirmed crude oil reserve of 145 billion barrels and a daily crude oil production of 4.41 million barrels. However, the two refineries currently in operation were constructed in the 1970s and their production capacity has decreased due to war damage and deterioration. Unable to meet domestic demand for petroleum products, Iraq has to import petroleum products such as gasoline.
This upgrading of the Basrah refinery will newly install, on land adjacent to the existing Basrah refinery, fluid catalytic cracking unit, vacuum distillation unit, and diesel desulfurization unit, etc., thereby increasing production to 19,000 barrels/day of gasoline and 36,000 barrels/day of diesel fuel, making it possible to reduce the gap in supply and demand for petroleum products. In addition, the petroleum products produced at the modernized refinery will meet international environmental standards and it is expected that they will contribute to reducing the environmental impact. This project is positioned as spearheading the modernization and sophistication of Iraq’s oil refining sector.
Funding for the project will be procured through Japanese ODA loans from the Japan International Cooperation Agency (JICA), and is the largest-scale reconstruction assistance from Japan since the 2003 Iraq War.
In carrying out this project, the Group plans to conduct skills training for more than 1,000 Iraqis and to hire approximately 7,000 skilled Iraqi workers. Furthermore, it is expected that more than 2,000 operating personnel jobs will be created after the project’s completion, which will contribute to solving the unemployment problem in Iraq.
The Group completed a power station reconstruction project in Iraq in 2013, and this is the Group’s second project in Iraq. The Group will contribute to the reconstruction and economic development of Iraq through the successful completion of this project.
