Total taps Technip for Yamal LNG

Friday, May 16, 2014

JSC Yamal LNG awarded Technip a major engineering, procurement and construction for the 16 mtpa-capacity Yamal LNG project in Russia, the French company announced 15 May 2014. Technip said it has been involved in planning, engineering and procurement work associated with the project for the past 14 months.

A contract amount was not announced, but Technip listed the order intake at €4.5 billion across 2Q and 3Q 2014.

The Yamal LNG project is located in the Yamal peninsula, on the estuary of the Ob River. The peninsula is ice-encrusted for the majority of the year. The Yamal LNG project will require the construction of three trains of 5.5mtpa capacity, a gas terminal, and numerous icetankers, each able to transport 170,000cu m. Total said the field plan also includes drilling approximately 200 well at 19 well pads.

Daewoo Shipbuilding & Marine Engineering won tender for the construction of up to 16 ARC7 ice-class LNG tankers, enabling year-round deliveries in temperatures up to -50° and navigating in ice more than 2.1m thick, Yamal LNG’s announcement said.  

The plant is expected to start up in 2017, with shipments planned to Europe and Asia.

Progress on Yamal LNG

Besides the plant itself and its liquefaction facilities, the Sabetta Sea Port and an airport are also being constructed.

Total and Novatek approved the final investment decision in late December 2013 for the then-estimated US$27 billion project, which will source gas from the South-Tambeyskoye field. Novatek holds the exploration and production license for the field, which is located in the northeastern part of the Yamal Peninsula. Data from 31 December 2012 estimated the field to contain 907Bcm of natural gas reserves.

A cooperation for LNG transshipment is in place with Belgium’s Fluxys, and a long-term supply contract is in place with Spain’s Gas Natural Union Fenosa.

FEED was completed in 2012. Face walls, anchor walls and screening pile rows at the peninsula's Sabetta Sea Port were completed in August 2013. “These construction solutions will enable beginning of dredging activities in the quay apron area as early as this year, thus ensuring year-round access of large cargo vessels,” JSC Yamal LNG said. Port facilities to enable delivery and offloading of modules up to 8000 tons are scheduled to be completed in June.

The Yamal LNG project is operated by JSC Yamal LNG, a joint venture consortium originally owned by Total (20%) and Russia’s Novatek (80%). CNPC joined the consortium in January after purchasing a 20% stake from Novatek.

Map of Yamal LNG from Total.

Categories: Contracts LNG Engineering Russia Arctic Asia Construction Installation Procurement

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