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Saipem awarded contract for Russian LNG project

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LNG Industry,

Saipem has announced that, in joint venture (JV) with Renaissance (a Turkish oil and gas services company), it has been awarded a new onshore engineering and construction project in Russia by Arctic LNG 2.

The project involves the construction of three LNG plants in the Tazovsky District in the western section of the Gydan Peninsula, Russia. Each plant will have a capacity of approximately 6.6 million tpy, and will be installed on concrete gravity based structures (GBSs). The project will also include LNG storage facilities totalling 687 000 m3.

The project is valued at €2.2 billion and, as leader of the JV with a shareholding of 50%, Saipem’s portion of the total amount is therefore approximately €1.1 billion. Arctic LNG consists of Novatek JSPC (60%) and Ekropromstroy Ltd (40%).

In the statement, Saipem claims that the JV will be responsible for the design and construction of the three 30 m high concrete GBSs on a surface of 330 x 152 m. Reportedly, these GBSs will be fabricated in two dry docks in a facility in Murmansk provided by Novatek. Once the fabrication is complete, they will be towed and installed in Gydan.

The contract forms part of a strategic partnership agreement that was signed by Saipem and Novatek in 2016 for activities related to LNG projects.

The CEO of Saipem, Stefano Cao, said: “The awarding of this contract demonstrates how Saipem is fully integrated into the process of energy transition and represents a further success in the high added value LNG sector in which we have been operating for many years and in which, in the recent past, we have obtained important contracts. Finally, the signing of this contract reinforces the presence of Saipem in Russia, a country in which the Company has an important track record in the realisation of both onshore and offshore infrastructures.”

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