SNC-Lavalin receives oil and gas contract in Permian Basin, US

SNC-Lavalin has received a ten-year $100m Build-Own-Operate (BOO) oil and gas service contract from Crestwood Equity Partners for the engineering, procurement, construction (EPC) and operations of multiple gas compression and dehydration facilities in the Permian Basin, US.

Under the contract, SNC-Lavalin through its production and processing solutions service line will provide design, construction and operations of more than 100,000 horsepower of compression, inlet separation and filtration, gas dehydration with station measurement and controls.

SNC-Lavalin Oil and Gas president Martin Adler said: “We are proud to have been awarded this project to deliver and operate a significant level of compression facilities in the US market for Crestwood.

“While the midstream market faces a number of challenges, our quick-to-monetise solutions and performance-based fee structures are helping our customers continue to invest in existing and new assets, while expediting cash contribution from these assets.”

It is reported that all stations will be developed on the greenfield locations.

Production and processing solutions CEO Steve Gill stated: “The BOO model, in addition to our traditional engineering and equipment services, has been greatly strengthened as part of SNC-Lavalin.

"Our production and processing solutions service line, previously known as Valerus, has a wide range of applications globally for clients seeking innovative solutions for production and processing, scaling from small wellhead facilities up to complete gas plant facilities.

“I am especially pleased with this award, as it is strategically located in the heart of the Permian Basin, which is currently the most active play in the US market, further enhancing our future opportunities in the region by leveraging our operations infrastructure.” 

Founded in 1911, SNC-Lavalin provides EPC services to its clients across various industries and currently has offices in more than 50 countries.