Shell extends gas contract with Wood Group PSN

Royal Dutch Shell has extended its contract with UK oil services company Wood Group PSN to deliver midstream engineering and construction services.

Wood Group PSN, as per the agreement, will render midstream and engineering services to the St Fergus and Mossmoron gas plants in Scotland.

The two year deal, worth £75m, will be effective from April this year, and includes an option for a further two-year extension.

Under the current deal, the company will provide project management, engineering, construction, commissioning and maintenance support and fabric maintenance and supply chain management services.

The move marks a continuation of the contract first awarded to Scotland-based company back in 2007.

Wood Group PSN UK managing director Robin Watson said the contract will help the company develop its midstream onshore plants business and support Shell’s rejuvenation project to extend the life of the plants.

St Fergus gas terminal and Mossmoran natural gas plants with Braefoot Bay marine loading terminal form part of the Shell Northern Plants group, which process gas from both the UK and Norwegian sectors of the North Sea.

St Fergus terminal, which receives 20% of UK’s gas, removes ethane, propane and liquids and delivers gas to the national grid.

The Mossmorran plant extracts natural gasoline, ethane, propane and butane feeding ethane to the Exxon Mobil Fife Ethylene plant and supplying other products to the market through the Braefoot Bay Marine loading terminal.