Sakhalin Energy awards LNG specification contract

Sakhalin Energy Investment Co. Ltd. has awarded a contract relating to a 9 million-ton liquefied natural gas plant to be built on Sakhalin Island to a consortium headed by Fluor Daniel, a unit of Fluor Corp. Under the $10 million contract, the companies will provide engineering services to prepare project specification and Russian permitting documents.

Sep 28th, 2000


Sakhalin Energy Investment Co. Ltd. has awarded a contract relating to a 9 million-ton liquefied natural gas (LNG) plant to be built on Sakhalin Island to a consortium headed by Fluor Daniel, a unit of Fluor Corp. Under the $10 million contract, the companies will provide engineering services to prepare project specification and Russian permitting documents.

The plant will be the first world-scale LNG plant to be built in the Russian Federation, said Fluor Daniel, which added the plant will use a proprietary process owned by Royal Dutch/Shell Group.

Other participants in the engineering consortium are Chiyoda Corp., Japan, and OAO NIPIgaspererabotka, Russia. Work will continue through August 2001.

Sakhalin Energy is a joint venture company established by Shell, Marathon-USX Group, Mitsui Corp. and Mitsubishi Corp. to develop the Sakhalin II oil and gas production and export project.

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