17 Sep 2019 16:46

U.S.-China JV receives contract for production of 3 modules for Arctic LNG 2

MOSCOW. Sept 17 (Interfax) - McDermott Wuchuan Offshore Engineering Co. Ltd (QMW), a joint venture between U.S. McDermott International and China's China Shipbuilding Industry Corporation (CISC), has received a large contract for production of three modules for the Arctic LNG 2 project, McDermott said in a statement.

McDermott defines a large contract as between $50 million and $250 million. The designation refers to McDermott's share of the award via its joint venture.

"This award recognizes QMW's experience and excellent performance in the Arctic on an earlier Yamal LNG project. It is further evidence that QMW is a tier one module fabricator in the LNG market. Fabrication will be completed in QMW's mega module workshop which provides increased certainty for safety, schedule and successful project delivery," said McDermott's Senior Vice President Asia Pacific, Ian Prescott.

The scope includes the fabrication of three Pre-Assembled Unit Complex Process Modules. QMW will undertake fabrication engineering, partial procurement, construction and pre-commissioning scope. Fabrication for the modules is scheduled to commence at the end of 2019 and be completed in mid-2022.

Arctic LNG 2 involves the construction of three liquefied natural gas (LNG) production trains with capacities of 6.6 million tonnes per year, for a total of 19.8 million tonnes. The cost of the project, which is based on the resources of the Utrennoye field, is estimated at $20-21 billion.

The first train of the plant should be launched by Q3 2023 at the latest and the second and third trains will be launched in 2024 and 2026.

Gravity based structures (GBS) for the project will be built at the Novatek-Murmansk Offshore Superfacility Construction Yard (OSCY), closed to Belokamenka in the Murmansk region and then towed to the Gydan Peninsula.

Novatek owns 60% of Arctic LNG 2 and France's Total, China's CNPC and CNOOC and the Japan Arctic LNG B.V. consisting of Mitsui & Co and JOGMEC each have 10%.