International LNG Congress- Hamburg

Achieving Predictable Outcomes for Modular Construction on LNG Projects

John Jeffers Group Development Director

A world leaderFounded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin's employees are proud to build what matters. Our teams provide EPC and EPCM services to clients in a variety of industry sectors, including oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions.

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Project Delivery Challenges

*Spotlight on oil and gas megaprojects report, EY 2014

64% 73%of megaprojects are facing cost overruns

of megaprojects are reporting schedule delays

Completion costs are regularly 59% higher than initial cost estimates, on average representing an incremental cost of USD500bn

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LNG Project cost in Australia / PNG

Pluto LNG

Prelude LNG*

GLNG

PLNG

QCLNG

APLNG

Wheatstone

Ichthys

Gorgon LNG

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Intial budget Overrun

•* Prelude LNG project has an initial budget of $12-13bn and a current forecast overrun of $1-2bn

Source: FT.com 30th October 2016

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›FIRED HEATER › ›2400 Tonnes,›14m W x 24m D› x 40 m H

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Benefits of Modularization

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Our Challenges

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Constraints to Modular Approach

› Project schedule › Logistics

› Document control › Quality

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Achieving Predictable Outcomes

› Fully integrated project execution planning

› Experienced construction yard / Quality

› Single, integrated document management system

› Management of change

› Contract alignment - one team – one mission

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Standardization

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What Success Looks Like

› Improved strategic master planning with realistic & achievable schedules

› Single integrated document management system

› Reverse pass planning – systems commissioning to early design

› Greater collaboration between all stakeholders – think auto!

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Thank you - Danke - Je vous remerciejohn.jeffers@snclavalin.com