Rotary Engineering Limited, a provider of engineering, procurement, construction and maintenance (“EPCM”) services supporting the oil and gas and petrochemical industry, has won several contracts worth a total value of about $80 million.
One of the contracts sees Rotary break into the LNG space by securing a contract with IHI Corporation to provide tankage works for two 160,000m3 LNG storage tanks for the LNG receiving terminal expansion project, Phase II at Map Tha Phut petrochemical hub in Rayong, Thailand.
Rotary’s Chairman and Managing Director, Roger Chia Kim Piow said, “We are excited about this new win. Rotary has invested time and resources to prepare for this market and finally it has come to fruition. We are encouraged with the trust that our client has placed upon us. This is a reflection of Rotary’s strong and good reputation which it has built over the years. With this track record, we are now well positioned to participate in the other LNG projects in Singapore, Asia and the Middle East.”
Rotary’s expertise and experience in bulk liquid storage includes atmospheric, pressurized, and cryogenic storage infrastructure for petroleum products and speciality chemicals. To date, Rotary’s cryogenic capabilities extend only till cryogenic double-walled tanks for ammonia and ethylene. The recent award of the LNG contract in Thailand completes the value chain of cryogenic storage infrastructure that Rotary can now provide to its valued clients. The strategic decision to enter the LNG arena, which entails months of preparatory work, including sending staff for advanced technical training, has finally paid off. Rotary’s move to acquire LNG capabilities also allows it to be aligned with, and benefit from Singapore’s drive to be an LNG trading hub.
With this track record, Rotary is now ready to participate in the development of new LNG terminals, where it sees high growth potential. The world is shifting from coal and fuel oil to cleaner natural gas for power generation. More LNG regasification and storage terminals are coming up to meet this demand, which is further spurred by economic growth and urbanisation, particularly in Asia and the Middle East.
Press Release, September 2, 2014; Image: PTT LNG