Petrofac strikes Sakhalin Energy contract

Sakhalin LNG plant (Image courtesy of Sakhalin Energy)

International service provider Petrofac has been awarded a contract with Sakhalin Energy, the operator of Russia’s first LNG export plant.

The contract worth more than $700 million comprises a lump-sum engineering, procurement and offshore fabrication component, as well as a reimbursable element for construction and site services.

The scope of work includes inlet separation and feed gas compression facilities, a new flare system, utilities, substations and associated buildings. The works also include a temporary beach landing facility, refurbishment of the existing camp, temporary site facilities for Sakhalin Energy and Petrofac, as well as brownfield tie-ins to the existing onshore production facility.

With early engineering work already underway, the project will support Sakhalin Energy in maintaining its sustainable LNG capacity, according to a Petrofac statement.

The LNG facility located in Prigorodnoye on Russia’s remote Sakhalin Island started producing the chilled fuel back in 2009 from two liquefaction trains with a total production capacity of 9.6 million tons of LNG per annum.

Sakhalin Energy shareholders are Gazprom (50% plus one share), Shell (27,5% minus one share), Mitsui (12.5%) and Mitsubishi (10%).

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