French LNG engineering firm Technip Energies has secured a contract from Shaanxi LNG Reserves & Logistics for the Xi’An LNG emergency reserve and peak regulation project in China.
According to a statement by Technip Energies, the “significant” contract for the 3 million normal cubic meters per day facility is worth between 50 million euros and 250 million euros ($54 million-$272 million).
The contract covers the process design package, front-end engineering and design (FEED), and supply of key equipment of a single 0.8 mtpa LNG train.
Also, it covers technical services for construction, commissioning, start-up, and performance testing.
Technip Energies said the plant will utilize AP-SMR liquefaction technology which is well suited for mid-scale LNG and will be all-electric motor-driven with the aim of reducing emissions.
It will be the largest liquefaction unit in the world using a single electric motor-driven mixed refrigerant compressor, hence being a reference in terms of low-carbon LNG production, Technip Energies claims.
Loic Chapuis, SVP gas and low-carbon energies of Technip Energies, said in the statement that this is the second contract the firm has secured from Shaanxi Yanchang Petroleum Group and Shaanxi Gas Group following the successful Yangling LNG project awarded in 2012.
He added that this award strengthens the company’s positioning in the mid-scale LNG market in China.
Technip Energies is currently working on up to ten LNG FEED contracts and expects to secure new EPC deals this year, its chief executive Arnaud Pieton recently said.
He said that the company expects the global gas and LNG markets to remain “strong” in 2023 and beyond supported by further demand growth in Europe and recovering demand from China.
