Rosneft, Exxon Select Contractors for LNG Project

Rosneft, Exxon Select Contractors for LNG Project

ExxonMobil announced Monday that it and Rosneft have selected CB&I UK and Foster Wheeler Energy as contractors for the initial phase front-end engineering and design (FEED) for their proposed Russian Far East liquefied natural gas project.

The two partners in the project intend to finalize its design by the end of 2014. This will include FEED documentation for the LNG plant, associated facilities and a gas pipeline, as well as engineering studies and an environmental impact assessment.

CB&I UK and Foster Wheeler Energy will be awarded separate contracts for the initial phase FEED. The scope of work covers a conceptual project that includes finalizing details for an LNG plant site, gas liquefaction technology and construction method. Following submission by the companies of their respective concepts and design, Rosneft and ExxonMobil will evaluate the companies' work prior to awarding a contract for the second phase of FEED.

The plant design capacity of the project is expected to be five million tons per year and may be expanded in the future. The liquefaction plant will receive natural gas feedstock from Rosneft's reserves in the Far East and Sakhalin gas reserves. 

Rosneft President Igor Sechin commented in a company statement:

"We are pleased with the technical progress of our joint team of experts from Rosneft and ExxonMobil. With our initial FEED contractors on board now we will see the project begin to take shape in a matter of months. We are taking a determined approach with this project to help monetize the gas resources of Russia."

ExxonMobil Russia President Glenn Waller commented:

"We look forward to working with Rosneft and our initial FEED contractors on further evaluation of specific technical and commercial aspects of a potential LNG project. Special attention will be given during the design phase to reduce the environmental impact on the unique ecosystem of the area and to developing local infrastructure."

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