Franco-US energy engineers TechnipFMC awarded Arctic LNG contract valued at $7.6Bln

Wednesday, 24 July 2019
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TechnipFMC, the Franco-US energy and LNG engineering company, said it was awarded a major engineering, procurement and construction contract by Novatek of Russia and its joint venture partners for the Arctic LNG II project proposed for the Russian Gydan Peninsula of northern Siberia.

TechnipFMC said the consolidated contract value to TechnipFMC for Arctic LNG II is $7.6 billion.

The Arctic development will produce almost 20 million tonnes per annum of LNG from three liquefaction Trains to be installed on three gravity-based structure platforms.

TchnipFMC said it would execute this project under a lump-sum and reimbursable basis. It will cover the EPC of the three LNG Trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards.

Technip, before its merger with Houston-based FMC Technologies, worked on the Yamal LNG project, which shipped its first cargo in December 2017.

The Yamal plant comprises three liquefaction Trains built on shore with a total nameplate capacity of 16.5 MTPA, or 5.5 MTPA per Train.

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

“This project recognizes the experience and expertise of our teams as well as their capacity to deliver the most ambitious and innovative projects,” added Uccelletti.

“It also confirms the leadership of TechnipFMC both in the LNG market and in the transition journey of the global energy industry,” he stated, without elaborating on his idea.

Other Arctic LNG II project contracts have been signed with turbo-machinery provider Siemens of Germany and the oil and gas subsea specialist and engineering services firm, Saipem of Italy.

Novetak has sold stakes in Arctic LNG II to subsidiaries of two Chinese majors, China National Petroleum Corp. and China National Offshore Oil Corp.

Other investors include a consortium called Japan Arctic LNG comprising Japanese trading house Mitsui & Co and the state-run Japan Oil, Gas and Metals National Corp. and French energy major Total.

The shareholdings of the various participants are: Novatek 60 percent and the four other partners, Total, CNPC, CNOOC and the Japan Arctic LNG each with 10 percent.

Total and CNPC are shareholders in the existing Yamal LNG plant.

Total additionally owns a 19.4 percent stake in the Novatek company so its 10 percent direct stake in Novatek’s second plant gives it 21.6 percent of the Arctic II project.

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