QMW To Deliver Yamal Process Modules

'Large' EPC Contract to Begin This Year

Engineering joint venture Qingdao McDermott Wuchuan Offshore is to fabricate and transport multiple large process modules for the Arctic LNG 2 project in northern Russia.

The contract will involve breakbulk transport of three pre-assembled unit Complex process modules in the Yamal-Nenets Autonomous Region in Russia, where the harsh environment is expected to present severe challenges for breakbulk transport.

"This award recognizes QMW's experience and excellent performance in the Arctic on an earlier Yamal LNG project. It is further evidence that QMW is a tier one module fabricator in the LNG market," said Ian Prescott, McDermott's senior vice president Asia-Pacific.

Arctic LNG 2

The modules will be delivered to the Arctic LNG 2 Project, with all engineering, procurement, construction and pre-commissioning carried out by the partners behind QMW Offshore.
“Fabrication will be completed in QMW's mega module workshop which provides increased certainty for safety, schedule and successful project delivery,” Prescott added.
Fabrication for the modules is scheduled to begin a at the end of this year. Transport will take place over the next four years with construction set to complete in mid-2022. McDermott declined to comment on the contract value, defining it as up to US$250 million in total.

Gydan Peninsula

Located in the Gydan Peninsula, about 70 kilometers across the Ob Bay from Yamal LNG, the Arctic LNG 2 project is an integral part of one of the largest gas processing complexes in the world, with three LNG trains, designed to deliver capacity of 6.6 million tonnes per annum of LNG each, and a minimum of 1.6 million tonnes per annum of stable gas condensate.

The Yamal LNG plant is expected to deliver output capacity of around 16.5 million tonnes per year from the South Tambey Field and is also currently under development by Novatek, Russia's second-largest natural gas producer.

McDermott notes that the award will not be included in McDermott's publicly reported Remaining Performance Obligation backlog since QMW is accounted for as an equity method joint venture.