Saturday, January 19, 2019

Italy's Saipem Strikes Deal with Turkish Renaissance for Arctic LNG-2

December 19, 2018

Image: Saipem

Italian oil and gas industry contractor Saipem and Turkey's Ronesans signed a joint venture (JV) agreement for infrastructure construction for Russian Federation's Arctic LNG-2 project.

Saipem said the contract for the construction of the project is worth EUR 2.2 billion (USD 2.5 billion).

As leader of the JV, with a shareholding of 50%, Saipem’s portion of the total amount is therefore approximately 1.1 billion Euro, it said.

The contract has been awarded by the company Artic LNG 2, consisting of Novatek (NVTK.ME) JSPC (60%) and Ekropromstroy Ltd (40%).The project will be executed in the Tazovsky District, in the autonomous administrative region of Yamal-Nenets, in the western part of the Gydan Peninsula.

The project encompasses the construction of three Liquefied Natural Gas (LNGLF) (LNG) plants, each with a capacity of about 6.6 million tons per annum (MTPA), that will be installed on Concrete Gravity Based Structures (GBS) and includes LNG storage facilities totalling 687,000 m3.

The works entrusted to the JV comprise the Design and Build of the three 30 metre high Concrete Gravity Based Structures on a surface of 330 x 152 metres. These Concrete GBSs will be fabricated in two dry docks in a Novatek provided facility in Murmansk. Subsequently, they will be towed and installed in Gydan.

The contract forms part of a strategic partnership agreement signed by Saipem and Novatek in 2016 for activities associated with LNG projects.

Stefano Cao, Saipem CEO, commented: “The awarding of this contract demonstrates how Saipem is fully integrated into the process of energy transition and represents a further success in the high added value LNG sector in which we have been operating for many years and in which, in the recent past, we have obtained important contracts. Finally, the signing of this contract reinforces the presence of Saipem in Russia, a country in which the Company has an important track record in the realisation of both onshore and offshore infrastructures”.

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