July's top stories: AEG's $27bn contract, Saudi Aramco's four engineering contracts

AEG Power Solutions secured a contract to supply equipment for the $27bn Yamal LNG project in Russia, and Saudi Aramco signed four engineering contracts to build its SAR50bn ($13.3bn) Fadhili gas processing project. Hydrocarbons-technology.com wraps up the key headlines for July 2016.


Russia’s $27bn Yamal LNG project secured to receive power equipment from AEG

AEG Power Solutions secured a contract to supply equipment for the $27bn Yamal LNG project in Russia.

Novatek owns a 50.1% stake in the project, which is developed by JSC Yamal LNG. Total and CNPC own a 20% stake each, while the Silk Road Fund owns a 9.9% interest.

JSC Yamal is implementing the project to build a natural gas liquefaction plant, which will have a capacity of 16.5 million tonnes per annum (mtpa) based on the resources of the South-Tambeyskoye field.

Saudi Aramco signed engineering contracts for $13.3bn Fadhili gas processing project


Saudi Aramco signed four engineering contracts to build its SAR50bn ($13.3bn) Fadhili gas processing project.

The project is aimed at expanding the company’s gas production and supply with clean-burning natural gas to meet the growing domestic demand for energy.

The contracts have also been signed with Larsen & Tubro for Fadhili offshore facilities, Saudi KAD for Fadhili downstream, Saudi Electric and Engie for the Fadhili combine heat and power (CHP), and Mohammed I. Al Subeae & Sons Investment for the Fadhili residential camp.

Technip won contract for SCT&E LNG’s $6.9bn export terminal in US

Technip secured a contract for SCT&E LNG’s proposed $6.9bn liquefied natural gas (LNG) export terminal on Monkey Island in Cameron Parish, Louisiana, US.

Under the agreement, Technip will provide engineering services that are needed to develop the project including the front end engineering design (FEED) and support the Federal Energy Regulatory Commission (FERC) process.

Technip North America onshore business unit chief operating officer Harvey Vigneault said: “Our experienced team of LNG and project professionals will utilise their extensive experience and expertise to place the Monkey Island LNG project in the best position moving forward.

Southern Company agreed to acquire 50% stake in Kinder Morgan’s SNG pipeline for $1.47bn

Southern Company signed an agreement to acquire a 50% stake in US-based Kinder Morgan’s southern natural gas (SNG) pipeline system for $1.47bn.

Following the deal, Kinder Morgan will continue to operate the pipeline system.

The 7,600-mile SNG pipeline connects natural gas supply basins in Texas, Louisiana, Mississippi, Alabama and the Gulf of Mexico to Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina and Tennessee markets.

Construction works began on Saudi Aramco’s $2.1bn gas complex

Construction works began on a $2.1bn industrial gas complex in Saudi Arabia, which will serve the Jazan refinery and terminal upon completion.

In April last year, Saudi Aramco awarded a contract to Jazan Gas Projects Company (JGPC), a joint venture (JV) between Acwa and US-based Air Products to build, own and operate the complex.

The gas complex will supply 75,000t per day to Saudi Aramco’s refinery currently being built in Jazan.

California denied SoCalGas’ proposal to build $621.3m North-South Pipeline


The California Public Utilities Commission (CPUC) rejected Southern California Gas' (SoCalGas) proposal to build the $621.3m North-South Pipeline as the firm could not demonstrate a need for the project.

SoCalGas proposed that the pipeline would have consisted of a new natural gas pipeline between the town of Adelanto and the Moreno Pressure Limiting Station.

The project would also have involved rebuilding of the Adelanto Compressor Station, in part, to increase reliability by allowing the Honor Rancho storage field on the northern system to help support deliveries on the southern system.

Devon Energy agreed to sell 50% stake in Access Pipeline for $1.1bn

Devon Energy signed an agreement to sell its 50% stake in Access Pipeline to Wolf Midstream, a portfolio company of Canada Pension Plan Investment Board, in a deal valued at C$1.4bn ($1.1bn).

The pipeline system includes pipelines that transport blended bitumen and diluent between the Christina Lake area of Northeastern Alberta and Edmonton.

The deal also includes the potential for a C$150m ($115.9m) payment based on the development of a new thermal-oil project on the company’s Pike lease in Alberta.

Expro secured contracts from India’s Oil and Natural Gas


UK-based oilfield services company Expro secured new contracts from India’s Oil and Natural Gas (ONGC).

Under the contracts worth more than $17m, Expro will carry out work on ONGC’s assets throughout western and eastern areas of India, including onshore Rajamundry, and Krishna Godavari basin and offshore Mumbai for more than three years.

The company will provide 15 kelvin (K) and 10K surface well testing packages for high-pressure high-temperature (HPHT) and conventional wells in addition to offering support from its facilities in-country.

Amec Foster Wheeler won contract for $5bn Cilacap refinery upgrade

Amec Foster Wheeler was selected by Pertamina and Saudi Aramco for a $5bn Cilacap Refinery upgrade in Central Java, Indonesia.

The company will provide engineering and project management services for the upgrade and expansion of the 348,000 barrels per day refinery over the next nine months and will also conduct the basic engineering design study.

In addition, Amec will develop the scope for the proposed project and finalise the process configuration and licensors’ packages.

BP announced final investment decision approval for Tangguh project in Indonesia

BP announced its approval of the final investment decision (FID) for the development of the Tangguh expansion project in Indonesia's Papua Barat Province.

The FID decision follows the Government of Indonesia's approval of the plan of development II in 2012.

The project is set to add a third LNG process train (Train 3) and 3.8 million tonnes per year (mtpa) of production capacity to the existing facility will bring the total plant capacity to 11.4mtpa.