EPC Contract Awarded for Thailand Cogeneration Project

Nefix Energy, an independent power producer, has recently awarded an engineering, procurement, and construction (EPC) contract to a consortium of Korean construction companies for a 110 MW (megawatt) cogeneration project in Rayong Province, Thailand.

The consortium of Korean construction companies includes Doosan Heavy Industries & Construction, as well as SC Engineering.  The project aims to supply and erect a General Electric 6FA gas turbine that operates in a combined cycle with a Doosan DST-G20 steam turbine.

This is a turn key fixed price EPC contract will supply electricity to the Electricity Generation Authority of Thailand (EGAT) and industrial customers. The power purchase agreement is set to span 25 years.

“We are encouraged by the progress we are making in the development and financing of the project, our first in the country,” Nefix Energy founder and co-CEO, Surender Singh said.

“We are pleased to serves our customers by providing reliable and competitive power and have the opportunity to contribute to the fast-growing economy of Thailand,” Singh added.

Nefix Energy acquired the project in June 2017. It will be financed by a consortium of lenders that is led by Standard Chartered Bank.

“The entry into this project and the achievement of the EPC signing is yet another indication of Nexif Energy’s continued momentum in the Asia Pacific (APAC) region since our formation in late 2015,” said Nefix Energy founder and co-CEO Matthew Bartley. “We are working hard to progress our pipeline of power generation projects throughout Vietnam, the Philippines, Bangladesh and Australia.”

About Nefix Energy: Formed in August 2015, Nefix Energy is a Singapore-based independent power management company and a leading global energy-focused private equity firm that has more than $9 billion USD invested across eight fund vehicles. The company’s goal is to develop, finance, construct and opportunistically acquire conventional and renewable power generation assets in Asia and Australia.

The Value of Outsourcing Engineering Services

If you’re business is undergoing a major project that requires engineering of any type, being able to outsource engineering services can be very valuable.

Companies that offer engineering services typically give their clients a convenient combination of flexibility, innovation, and problem solving. Clients can take part in the conceptualization of an idea or design, and then it’s up to the engineers to implement the clients’ requirements into the project. From concept, to design, to development, professional engineering services can help you every step of the way.

Adding engineering capability to any project adds a considerable amount of value to the client’s overall investment. A team of engineers working directly with clients allows for better, more practical, and safer designs.

There are all kinds of different types of engineering out there. Whether it’s civil, structural, mechanical, or electrical engineering that you’re in need of, it’s generally a good idea to outsource this work and let the experts handle the hard stuff. Many engineering services will also develop control methodologies and implement complex system integration works for their clients.

A typical project delivery and implementation plan for engineering services includes construction, fabrication, manufacturing, commissioning, operating, maintaining, supply chain & technical services, refurbishment & upgrades, and decommissioning.

Some key benefits to outsourcing your engineering services include: reduced complexity, personal attention from start to finish, reduced risk, collaborative plans, and higher capability.

Outsourcing engineering services can truly take any businesses project to the next level. Some sectors and industries that benefit most from the many types of engineering services that are out there include: power distribution, power generation, power transmission, substations, industrial water, wastewater, irrigation & reticulation, municipal water, freight rails, passengers rails, chemical resources, industrial processing, minerals & metals, oil & gas, communications networks, intelligent transport systems.

Work smarter not harder by outsourcing engineering services for your business’ major projects.

EPC Services and Their Importance to the Construction Industry

The term EPC refers to Engineering, Procurement, and Construction, and it is a prevalent form of contracting in the construction industry.

Typically the engineering and construction contractor involved in a project will execute a detailed design by procuring all equipment and materials necessary for the project and then constructing a fully functioning structure or facility that becomes an assert for their clients. Companies that offer full EPC projects employ EPC contractors.

The phase of a major building project that involved EPC is also known as the Execution Phase and typically follows the Front-End Design Phase. The Front-End Design Phase lays out the basic engineering design for the EPC Phase and can be broken up into separate packages that cover various portions of the overall project. These packages are used as the basis for bidding on EPC work on the market.

An EPC contractor must complete and deliver their responsibilities on the project within an agreed upon time and budget. This is commonly referred to as the Lump Sum Turn Key Contract or LSTK. This kind of contract places the burden of risk for scheduling and budget matter on the EPC contractor and not the company overseeing the project.

During the execution of the EPC contract, it’s not uncommon for the project owner or the EPC client to have a place in the EPC contractor’s office. Some project owners even implement a project management team to overlook the EPC contractor throughout the course of the contract.

The project management team, along with the assistance of certain specialist, ensures that the EPC contractor is carrying out their duties in accordance with what is outlined in the EPC contract.

In certain cases, an EPC contractor will begin work on a direct reimbursable basis, which is then followed by a conversion to LSTK once sufficient time and resources become available. This process is sometimes called an Open Book Estimate.