Moscow, 3 April (Argus) — The Novatek-led Yamal LNG project has chosen a consortium of France's Technip and Japan's JGC as the engineering, procurement and construction (EPC) contractor for the LNG plant in the northeast of the Yamal peninsula, Russia. Tender results were announced on 1 April.
“The project will start immediately with a phase of detailed engineering, estimation and early procurement,” Technip said.
Other bidders were US firm CB&I, Italy's Saipem, Japan's Chiyoda and Russia's Stroigasconsulting. Yamal LNG's decision looks logical given that Technip prepared the feasibility study for the LNG plant last year. Technip often co-operates with Total, which has a 20pc stake in Yamal LNG. Russia's independent gas producer Novatek holds 80pc of the project.
A final investment decision on the project is expected in the middle of this year.
The planned LNG plant would have three LNG trains with combined capacity of 16.5mn t/yr. According to investment bank UBS, the plant could cost $10bn, almost half of total Yamal LNG capital costs.
The first train would be commissioned in late 2016-early 2017, reaching full capacity by 2019. The LNG plant would be built at the Sabetta export terminal. Gas produced from the nearby 907bn m³ South Tambei field would be liquefied at the plant.
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