TechnipFMC Bags Arctic LNG 2 EPC Contract

TechnipFMC has been awarded a ‘major’ engineering, procurement and construction (EPC) contract by Novatek and its partners for the Arctic LNG 2 project located in the Gydan peninsula in West Siberia, Russia, it said July 23. For TechnipFMC, a ‘major’ contract is over $1bn; the consolidated contract value to TechnipFMC for Arctic LNG 2 is $7.6bn.

This development will consist of three LNG trains, each with a capacity of 6.6mn metric tons/year, which will be installed on three gravity-based structure platforms, it said.

TechnipFMC will execute this project under a lump sum and reimbursable basis. It will cover the EPC of the three LNG trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards, it said.

Russia’s Novatek said July 22 it had finalised key partnerships at the Arctic LNG-2 development, bringing the project one step closer to a final investment decision (FID).

In a statement, the independent gas producer said it had closed the sales of stakes in the planned LNG export terminal to Chinese companies CNPC and Cnooc and Japanese operators Mitsui and Japan Oil, Gas and Metals National Corp. (Jogmec). Earlier this year CNPC and Cnooc agreed to share a 20% interest in the project, while Mitsui and Jogmec signed deals to together take 10%.