Yamal LNG awards concept contract

By OGJ editors
HOUSTON, May 5
-- Yamal LNG LLC has awarded a contract to CB&I Lummus for concept development services for the Yamal LNG integrated project to be completed in first-half 2011.

The project consists of the production, treatment, transportation, liquefaction, and shipping of natural gas and NGLs from South Tambey field on the Yamal Peninsula in northwestern Siberia. Reserves in South Tambey field are estimated at more than 1 trillion cu m (35.3 tcf).

CB&I's project scope includes concept development of the 15-16 million tonne/year LNG liquefaction plant, including LNG storage and loading, as well as arctic shipping and ice management, a gas transmission pipeline, central production for gas and condensate treatment, and associated well sites and gas gathering, said the announcement.

Concept development will “address the technical, economic, and execution feasibility of the remote arctic project and provide a project schedule and cost estimates,” in addition to the design basis for frontend engineering and design.

Project operator Yamal LNG is controlled by OJSC Novatek, Russia's largest independent natural gas producer and the second-largest natural gas producer in Russia, said CB&I.

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