McDermott JV Bags Arctic LNG-2 Deal
US engineering group McDermott International’s joint venture with China Shipbuilding Industry Corp. (CSIC) has secured a contract for three complex modules at the Arctic LNG-2 project in the Russian Arctic.
Qingdao McDermott Wuchuan Offshore Engineering (QMW) has been hired to fabricate three pre-assembled units complex process modules, McDermott said in a notice on September 17. The scope of the work includes fabrication engineering, partial procurement, construction and pre-commissioning. Fabrication is slated to start at the end of this year and be completed in mid-2022.
McDermott said the contract was “large”, placing its share of the value at somewhere between $50mn and $250mn.
The Arctic LNG-2 project will establish a LNG liquefaction terminal on the Gydan Peninsula with an export capacity of 19.8mn mt/yr. Russia’s Novatek, France’s Total, China’s CNPC and Cnooc and Japan’s Mitsui and Jogmec, took a final investment decision (FID) on the project earlier this month. Its three trains are due online in 2023, 2024 and 2026 respectively.