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Technip confirms award for the engineering, procurement and construction of Arctic Yamal LNG project

18 May 2014

Technip confirmed that with its partners it has finalized the award by JSC Yamal LNG of a very major contract for a liquefied natural gas (LNG) facility with a capacity of 16.5 million tons per year (Mt/y). The project will comprise three liquefaction trains of 5.5 Mt/y that are among the world’s largest and will make extensive use of modularized construction in yards. Yamal LNG is one of the largest industrial undertakings in the Arctic, according to the partners. (Earlier post.)

For the past 14 months, Technip has been involved in providing project planning, detailed engineering, estimation and procurement work for the client. This early engagement gives a comprehensive understanding of the project, around which the project execution plan has been built and handover of the first train is planned for 2017.

The scope of work will consist of engineering, procurement and module fabrication on a fixed-price basis, site construction on a reimbursable basis. Technip will recognize order intake estimated at €4.5 billion (US$6.2 billion) across the second and third quarters 2014.

The Arctic site presents numerous environmental design and construction challenges. As an example, in an attempt to protect the active (top) layer of Permafrost from vibrations and heat produced by the infrastructure, the facilities will be installed on pilings 60 centimeters (two feet) in diameter and 37 meters (121 feet) long. A total of 4,800 pilings will be used for the liquefaction plant alone.

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