• McDermott and Baker Hughes completes Upstream to LNG Development Plan for Equus Gas Project
• Goldman Sachs appointed as financial adviser in connection with the partnering process
• Equus Gas Project provides a bankable and globally competitive mid-scale LNG supply
• Engineering and design will now focus on development of proposals for the major work packages

The Equus Gas Project is on track for first gas in 2024 following the completion of the Upstream to LNG Development Plan and commencement of project financing and partnering activities.

Western Gas Executive Director Andrew Leibovitch said that the engineering and design process undertaken by the company’s development partners McDermott and Baker Hughes, a GE company, had delivered a globally competitive, midscale LNG development plan for the Equus fields.

The Upstream to LNG Development Plan comprises three production wells tied back to a floating production storage and offtake (FPSO) facility, a 160 km dry gas export pipeline to a nearshore 2 Mtpa floating LNG (FLNG) facility and an onshore pipeline connection.

Mr Leibovitch said that the Upstream to LNG Development Plan and Western Gas’ design-to-install contracting model brought together the best upstream technology and installation techniques with a low capex, modular FLNG facility to deliver a bankable and globally competitive LNG supply.

Engineering and design will now focus on development of proposals for the subsea, FPSO, pipeline and FLNG work packages.

Western Gas has appointed Goldman Sachs as the company’s financial adviser in connection with its partnering process.

“Equus is at the right stage of development where the introduction of an experienced and financially capable partner can help progress the project to first gas and realise the value of the greater Equus area,” Mr Leibovitch said.

“The partnering process together with the preparation of the project work packages will deliver Western Gas with the financial, project delivery and operational expertise to drive Equus into production in 2024.”

Mr Leibovitch added that 100% project ownership differentiated Equus from regional LNG projects.

“With no joint venture misalignment, Western Gas has full control of project design, delivery and partnering across the value chain,” he said.