Daewoo Engineering named preferred bidder for Papua New Guinea LNG project

Daewoo Engineering & Construction has been named the preferred bidder for a liquefied natural gas project in Papua New Guinea, strengthening its position in the global plant construction market.

The company disclosed Tuesday that TotalEnergies, the lead project owner of the Papua New Guinea LNG Project, selected it as the preferred EPC (engineering, procurement and construction) contractor for the Papua Central Processing Facility and Wellpads EPSCC (engineering, procurement, supply, construction and commissioning) project.

"This is the fruit of four years of effort since we were selected as the winner of the front-end engineering design phases 1 and 2 in July 2022," Daewoo Engineering & Construction said Thursday.

The project is one of Papua New Guinea's largest resource development undertakings, extracting natural gas from the Elk-Antelope gas field and producing approximately 6 million tons of LNG annually.

Daewoo Engineering & Construction will solely carry out the full EPSCC scope for the CPF and associated facilities, which process and refine gas from the field before supplying it to a liquefaction plant near the capital, Port Moresby.

The CPF — the centerpiece of the project — removes impurities from the raw gas and conditions it for the liquefaction process before sending it downstream. Because it governs the efficiency and stability of the entire LNG production chain, the work demands advanced technical expertise and project management capability across every stage, from design and procurement through construction and commissioning.

Daewoo Engineering & Construction has built up its CPF expertise through large-scale overseas projects including the Gbaran and Otumara facilities in Nigeria and the CAFC project in Algeria. The preferred-bidder designation again affirms the company's EPC capabilities across the full LNG value chain — from gas-field processing and liquefaction plants to receiving terminals.

The company also brings direct in-country experience from completing the Papua New Guinea LNG Phase 1 project on schedule, giving it a strong understanding of local site conditions and a proven track record in risk management that it plans to draw on throughout the new project.

"The combination of the deep project understanding we have accumulated since the FEED stage and Daewoo Engineering & Construction's proprietary CPF and LNG plant technology made this preferred-bidder selection possible," a company official said. "Building on our past successful project execution, we will meet every milestone on time — through the final investment decision, contract signing and construction start — to further cement our standing in the global energy market."

Meanwhile, Daewoo Engineering & Construction's preliminary consolidated earnings for the first half of this year showed sales of 3.99 trillion won ($2.82 billion), operating profit of 487.9 billion won and net profit for the period of 363 billion won.