Yamal LNG plans to place orders soon for LNG module manufacture - Technip chief
MOSCOW. April 25 (Interfax) - Yamgaz, the EPC contractor for the Yamal-LNG project, plans to place orders soon on manufacture of the modules for the project's LNG plant, mainly at Asia-based shipyards, said Thierry Pilenko, the head of Technip, which has a 50% stake in Yamgaz.
Despite the signing of the EPC contract, work on the scheme and the timetable for the deliveries must still be completed. That in turn will affect certain aspects of the revenue and earnings from the project in Technip's 2014 results, he said. Technip is not currently including any revenue from the projects in its financials. Finalization of the EPC contract will take a couple of months, he said.
Technip CFO Julian Waldron said it was a major project for the company and revenue from project implementation would amount to several billion euro. The company expects to receive increasing revenue from the project over the coming two years.
Capital expenditure on the project was pegged at $26.9 billion when the final investment decision was approved in December 2013. By that time, Yamal LNG shareholders Novatek and Total had spent $2.6 billion on the project.
The shareholders in Yamgaz are Technip with 50%, and Japanese JGC and Chiyoda with 25% each.
The EPC contractor is responsible for the engineering, procurement and construction of the plant. However, Yamgaz does not bear responsibility for construction risks at the site. Therefore, the EPC contractor is mainly focused on ensuring manufacture of the modules, which weigh several thousand tonnes, and in ensuring they are completed on schedule and to the proper quality specifications.
The Yamal LNG project involves development of the South-Tambeyskoye field with 1.3 trillion cubic meters of recoverable reserves and construction of a natural gas liquefaction plant with capacity to produce 16.5 million tonnes of LNG and 1 million tonnes of gas condensate a year. The LNG plant will have three lines, each with capacity to produce 5.5 million tonnes a year, with the first scheduled for launch in 2017.
