McDermott, the US energy and LNG project engineering company, has outlined part of the scope of the planned Fujairah LNG production facility being developed in the fifth-largest emirate by area of the seven United Arab Emirates.
McDermott was awarded the contract by Abu Dhabi National Oil Co. (Adnoc) to provide front-end engineering and design for the plant.
The Fujairah project will be centred around a liquefaction plant with a total capacity of 9.6 million tonnes per annum.
Fujairah is located outside the Arabian Gulf on the Gulf of Oman. The shores of Fujairah extend for 70 kilometres along the coast from the city of Fujairah.
The emirate shares its boundaries with the emirates of Sharjah and Ras Al Khaimah to the west and the south respectively.
In the north, Fujairah shares its international border with the Sultanate of Oman, an established LNG producer supplying customers in Asia.
Electric drives
“The plant will be designed with electric drives for the liquefaction compressors and will incorporate several features that significantly reduce greenhouse-gas emissions, capitalizing on the experience McDermott,” said the Houston, Texas-based company.
McDermott said the Fujairah plant would benefit from the “robust capabilities and experience” of the US company in FEED performance.
Our biggest differentiator is our ability to execute this FEED on a fast-track basis incorporating all of the characteristics required to support the award of EPC contracts which are expected in 2023,” said Tareq Kawash, Senior Vice President for Onshore at McDermott.
McDermott was involved in initial phases of Adnoc’s LNG development in the late 1980s that resulted in the Das Island plant in Abu Dhabi, the second-largest emirate after Dubai.
The US company constructed the storage facilities for both LNG and liquified petroleum gas (LPG) on an EPC basis on Das Island.
“We are proud to continue our long history with Adnoc by playing an important role in helping to define the next phase of LNG development in the UAE,” added Kawash.
McDermott noted that it was one of the most experienced engineering and construction firms serving the LNG market and has delivered more than 30 LNG Pre-FEED and FEED projects over the past 10 years.
The Fujairah LNG facilities FEED will be performed by teams in McDermott's offices in London and the UAE.
The US government reported that the increase in the nation’s liquefied natural gas exports was supported by large prices differences between the benchmark Henry Hub and spot prices in Europe and Asia and forecast a surge in shipments through March 2022.
Demand for liquefied natural gas was high worldwide as liftings remain in the three-digit zone with spot cargo prices rising for North Asia and with European benchmark gas values offering Atlantic-Pacific competition.
Chevron Corp., one of the world’s leading LNG production companies with three operated plants in Australia and Angola, said it would spend $14 billion in 2021, mainly targeted at its upstream activities, including the US shale assets in the Permian Basin.