Saipem joins Arctic LNG 2 project joint venture

Italian oil and gas industry contractor Saipem has reached an agreement with Technip France SA and NIPIgaspererabotka to participate in the joint venture for the realization of the Arctic LNG 2 project.

Saipem said on Friday that the contract would be executed under lump sum and reimbursable basis.

According to the company, Saipem was assigned a share of the project worth approximately €2.2 billion ($2.45 billion).

The project was awarded by Arctic LNG 2, a company formed by Novatek and Ekropromstroy with 60 and 40 percent stakes, respectively.

It comprises the detailed design, procurement, fabrication, construction, commissioning, and start-up of three LNG trains, each with a capacity of approximately 6.6 million tons per year, which will be installed on concrete gravity-based structures (GBS).

Saipem is currently designing and building the GBS under a contract awarded in mid-December 2018. The company won a deal to design and build the three 30-meter high concrete gravity-based structures. The structures are being fabricated in two dry docks in a Novatek provided facility in Murmansk and will later be towed and installed in Gydan.

As for the new LNG trains, they will be installed in the Tazovsky district located in the autonomous administrative region of Yamal – Nenets, in the western part of the Gydan peninsula.

Stefano Cao, CEO of Saipem, said: “Involvement in the works for the construction of the three trains for the Arctic LNG2 project, following the awards of the contracts for the gravity-based structures with the same client and the LNG Mozambique project with Anadarko, reaffirms Saipem’s strategic choice to consolidate its leadership across the entire natural gas value chain.“