What is an EPC Agreement? Here’s What You Need To Know

EPC contracts are an essential part of agreements in the power and energy sector today. That’s because an EPC arrangement between parties places responsibility on a single provider to design and construct an entire facility. At the end, the EPC contractor hands over a set of keys to the developer who can begin operating immediately. This is a closer look at the words behind this frequently used agreement.

Premier energy companies across the globe, whether it’s crude oil and natural gas companies, or others involved with LNG (Liquefied Natural Gas), LPG (Liquefied Petroleum Gas) or NGL (Natural Gas Liquids), tap Matrix Service for our EPC (engineering, procurement and fabrication) expertise. That’s because as a top EPC contractor, we understand the complexities involved to engineer, procure and construct for large-scale infrastructure. More importantly, we know what it takes to complete EPC endeavors safely, within budget and on schedule. Whether it’s oil and gas terminals to feed pipelines or critical infrastructure like crude oil storage terminals, we can help you identify opportunities and develop solutions with our proven EPC services. In this article, we will break down each part of an EPC agreement and spotlight our expertise through examples.

What is an EPC Contract?
Before we delve into the nitty-gritty of EPC, let’s focus on some basic terminology. As we pointed out at the start, EPC stands for engineering, procurement and construction, and for many businesses in the oil and gas industry and others, it’s a highly effective turnkey solution to move product to market. For example, when we were commissioned to build six crude oil gathering and storage facility for a project in the midwest, our EPC expertise facilitated the successful on-time, on-budget completion of terminals that feed the pipeline today. For large-scale, critical infrastructure like this, an EPC contract provides a highly effective turnkey solution. While the scope of an EPC appears straightforward, there’s a lot packed into these three terms, so let’s break them down.

Engineering in EPC Contract Work
When it comes to the engineering portion for EPC contracts, our engineering expertise is your edge to move more product to market. That’s because we focus on complete, multi-discipline solutions. Whether it’s feasibility studies, 3D facility modeling, project cost estimates, front-end engineering development studies, P&ID development, plot plan development, structural design/analysis, tank design/analysis, electrical design, instruments/control systems, piping design/analysis or commissioning and training, our complete range of engineering services will bring a higher level of expertise to your next project. When you partner with us, you will see no one is better qualified than our team to deliver on every front when it comes to EPC contract work.

Procurement in EPC Projects
With an understanding of engineering, let’s turn our attention to procurement. In today’s marketplace, a winning procurement strategy means finding a partner who can deliver items to spec, within budget and on time. When you work with Matrix Service, you partner with a qualified leader who will successfully guide you through the procurement process. To us, that means always ensuring materials are sourced to specification. It means making sure deliveries arrive on schedule. And it means taking the initiative to move to the next phase. We are a provider who knows what it takes to procure items quickly to seize the moment when market conditions are right. Because doing so means your product moves to market, faster.

Construction and EPC Contracts
Projects come to life with construction. At Matrix Service, we offer a variety of industrial construction solutions and approach every project, regardless of size, with the same dedication to safety, quality and deadline sensitivity. We are proud of our ability to offer solutions and supply in-house capabilities and resources that help our customers meet their engineering, procurement, and construction goals. For example, with our work on the aforementioned project in the midwest, we brought construction success with a workforce that peaked at over 900 direct hire and subcontract workers, as well as 120 construction management staff across all six terminal sites.

We provide single source responsibility for completing construction projects. And we believe the success of every project is contingent on frequent client communication and a close working relationship in the development and planning stages. That’s why we provide site-specific project teams to support projects from planning through completion. When you work with Matrix Service, you will see we strive to maximize the potential for cost savings and shorten schedules while maintaining our commitment to quality and safety.

Additional EPC Contract Experience
To shed additional light on our EPC expertise, just look to our track record. For a recent project, we were awarded a contract for not only the engineering, procurement and construction of a 1,000,000 gallon liquefied natural gas (LNG) cryogenic tank, but fabrication, too. This undertaking was part of the second Eagle LNG Plant, a wholly owned subsidiary of Ferus Natural Gas Fuels LP, in Jacksonville, FL. The inshore facility will be used to provide bunkering to two Crowley Marine ships that transport freight and other commodities from Jacksonville to Puerto Rico. In addition, the facility will have the capacity to load iso-containers that will ship LNG to remote locations.

An EPC contract is an important form of agreement in the construction industry. When you work with Matrix Service, we design with safety, cost and operability in mind. And remember: we are constantly expanding our services and areas of expertise. Whether it’s goals with aboveground storage tanks, terminals, specialty vessels or specialty vessels, we can help you get there.