CB&I and Foster Wheeler win contract for Far East LNG project in Russia

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

According to the Russian firm Rosneft, the project design is expected to be finalised by the end of 2014.

The scope of project includes FEED documentation for the plant, associated facilities and gas pipelines, as well as engineering studies and evaluation of the likely environmental impact.

The work includes finalising details for an LNG plant site, gas liquefaction technology and the construction method.

Following submission by the companies of their respective concepts and design, the oil and gas firms will assess the work products of the companies and award a contract for the second phase.

The plant design capacity of the project is expected to be five million tonnes annually with scope for expansion in the future.

Rosneft’s reserves in the Far East and other Sakhalin gas resources will provide natural gas feedstock to the liquefaction plant.

ExxonMobil Russia president Glenn Waller said that there will be a special focus on the design phase in order to cut down the environmental impact on the ecosystem of the area and to develop local infrastructure.

"We look forward to working with Rosneft and our initial FEED contractors on further evaluation of specific technical and commercial aspects of a potential LNG project," Waller added.

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Image: Russian Far East LNG project contract. Photo: courtesy of ROSNEFT.