Technip has been awarded by Shtokman Development Company the lumpsum frontend engineering design (FEED) contract for the onshore portion of the first phase of the Shtokman gas project in Russia.
The Shtokman gas field is located in the Barents Sea and is one of the world's largest gas condensate deposits with reserves of approximately 3,800 billion m3 of gas and 37 million tons of hydrocarbon condensate.
The onshore facilities for Shtokman Phase 1 will be located at a site adjacent to Teriberka, 120 km east of Murmansk. Phase 1 includes an offshore gas pipeline terminal, a gas treatment plant, a liquefied natural gas (LNG) train with a capacity of 7.5 million tons per year and an export plant for the Russian and European markets. Technip's operating centers in Paris, France and Saint Petersburg, Russia, will execute the contract. The FEED, which is scheduled to be completed by mid-2009, will form the technical basis for the detailed design, procurement and construction contracts that will be awarded later on.
In addition to the FEED contract, Technip has been awarded two additional contracts, one to establish a set of project standards and the second to assist Shtokman with the definition of site preparation works.
Shareholders in the Shtokman Development Company are Sevmorneftegaz, a wholly owned subsidiary of Gazprom (51%), Total (25%), and StatoilHydro (24%).
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