Achieving Predictable Outcomes for Modular Construction in LNG Projects

1. International LNG Congress- Hamburg
Achieving Predictable Outcomes for
Modular Construction on LNG Projects
John Jeffers Group Development Director

2. A world leader
Founded 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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3. Project Delivery Challenges
*Spotlight on oil and gas megaprojects report, EY 2014
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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

4. LNG Project cost in Australia / PNG
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0 5 10 15 20 25 30 35 40 45 50 55
Pluto LNG
Prelude LNG*
GLNG
PLNG
QCLNG
APLNG
Wheatstone
Ichthys
Gorgon LNG
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

7. Benefits of Modularization
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8. Our Challenges
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10. Constraints to Modular Approach
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› Project schedule › Logistics
› Document control › Quality

11. Achieving Predictable Outcomes
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› Fully integrated project
execution planning
› Experienced construction
yard / Quality
› Single, integrated document
management system
› Management of change
› Contract alignment - one
team – one mission

12. Standardization
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14. What Success Looks Like
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› 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 remercie
john.jeffers@snclavalin.com