The Italian oil and gas industry contractor’s share of its new contract for the Arctic LNG 2 project is worth around €2.2bn (£2.02bn)
Saipem has signed an agreement with Technip France and NIPIgaspererabotka to join a joint venture that will provide engineering, procurement and construction (EPC) services for the Arctic LNG 2 project in Russia.
The contract was awarded by Arctic LNG2, a company created by Novatek (60%) and Ekropromstroy (40%).
Saipem’s share of the contract is worth around €2.2bn (£2.02bn). Last month, TechnipFMC said that it was awarded an EPC contract worth $7.6bn (£6.26bn) for the LNG project in West Siberia from Novatek and its partners.
Details of Saipem’s new contract for the Arctic LNG 2 project
The contract calls for the detailed design, procurement, fabrication, construction, commissioning and start-up of three liquefied natural gas (LNG) trains, each with a capacity of nearly 6.6 million tons per year (MTPA). The three trains will be mounted on Concrete Gravity Based Structures (GBS) in the Gulf of Ob.
The Arctic LNG 2 project, which will have a capacity of 19.8MTPA, is being built in the Tazovsky district in the Yamal – Nenets region in the Gydan peninsula with an investment of around $21-23bn (£17.29-18.94bn).
The new LNG trains will be realised located in the autonomous administrative region of Yamal – Nenets, in the western part of the Gydan peninsula (Russian Federation).
The contract will be carried out under a lump sum and reimbursable basis.
Currently, Saipem is designing and building the GBS as part of a €2.2bn (£2.02bn) contract it won in consortium with the Turkish oil and gas services company Renaissance in December 2018.
Saipem CEO Stefano Cao said: “Involvement in the works for the construction of the three trains for the Arctic LNG2 project, following the awards of the contracts for the Gravity Based Structures with the same client and the LNG Mozambique Project with Anadarko, reaffirms Saipem’s strategic choice to consolidate its leadership across the entire natural gas value chain”.
The Arctic LNG 2 project, which is slated to be brought into service in 2023, will source gas the Utrenneye field, an onshore gas and condensate field in northern West Siberia, having more than seven billion boe of resources.