Initial contracts awarded for Russian Far East LNG project

Rosneft and ExxonMobil Corp. have selected CB&I UK and Foster Wheeler Energy as contractors for initial phase front-end engineering and design (FEED) for a proposed Russian Far East LNG project.

Rosneft and ExxonMobil intend to finalize project design by yearend 2014, including FEED for plant, associated facilities and gas pipeline, as well as engineering studies and environmental impact assessment. CB&I UK and Foster Wheeler will be awarded separate contracts.

Scope of work covers a conceptual project including final details for the plant site, gas liquefaction technology, and construction method. Following submission by the companies of concepts and design, said the joint announcement, Rosneft and ExxonMobil will evaluate the companies’ work product before awarding a contract for the second-phase FEED.

Plant design capacity is to be 5 million tonnes/year with possible expansion. The liquefaction plant will receive natural gas from Rosneft’s Far East and Sakhalin gas reserves.

Earlier this year, Russia’s Gazprom approved investment in another Far East LNG project, the Vladivostok LNG to be built on the Lomonosov Peninsula in Perevoznaya Bay.

Plans call for three 5-million tpy trains and are part of Gazprom’s Eastern Gas Program integrating field development and transportation projects. The first Vladivostok train is to start up in 2018, receiving gas from the Sakhalin, Yakutia, and Irkutsk production centers (OGJ Online, Feb. 25, 2013).

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