$7.6B Russia LNG Contract Goes to TechnipFMC

$7.6B Russia LNG Contract Goes to TechnipFMC
Arctic LNG 2 is being developed across the Gulf of Ob from Yamal LNG, pictured here. PHOTO SOURCE: Novatek

Novatek and its partners in the Arctic LNG 2 project have awarded TechnipFMC an engineering, procurement and construction (EPC) contract for the development on the Gydan peninsula in West Siberia, Russia, TechnipFMC reported Tuesday afternoon.

According to a written statement TechnipFMC emailed to Rigzone, the development will comprise three liquefaction trains installed on three gravity-based structure platforms. Each train will be capable of producing 6.6 million tons per annum (mtpa) of LNG, added the company, which will execute the project on a lump sum and reimbursable basis.

The consolidated Arctic LNG contract – valued at $7.6 billion – covers the EPC of the three LNG trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards, TechnipFMC noted.

“We are extremely honored to be entrusted with this new contract by Novatek and its partners,” Nello Uccelletti, TechnipFMC’s Onshore/Offshore president, stated. “We are leveraging our successful track record on the Yamal LNG project and notably the modular fabrication scheme.”

Novatek owns a 60-percent stake in Arctic LNG 2. The other project parcticipants, each holding a 10-percent interest, include Total, China National Petroleum Corp. (CNPC), CNOOC Ltd. and the Mitsui and Co.-Japan Oil, Gas and Metals National Corp. consortium Japan Arctic LNG, according to Novatek’s website. The website also notes that Arctic LNG 2 will liquefy gas from the Utrenneye field, which under the Russian reserves classification system holds approximately 2 trillion cubic meters of natural gas and 105 million tons of liquids.

The 19.8-mtpa Arctic LNG 2 complex is being developed across the Gulf of Ob from Novatek’s 17.4-mtpa Yamal LNG facility, which began production in 2017.


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