Aker Solutions and JGC win Yakutia LNG gig in Russia

A consortium consisting of Japan’s JGC and Norway’s Aker Solutions has won a front-end engineering design contract for A-Property’s planned Yakutia LNG export project in Russia.

A-Property said in a statement it had shortlisted three from thirteen firms to win the project’s FEED contract after launching a tender last year.

The firms included Technip Energies, McDermott, and JGC in consortium with Aker Solutions. Technip previously completed the pre-FEED study for the project.

JGC and Aker Solutions have already started work which should last about two years.

A-Property expects to take a final investment decision on the first phase of the project at the end of 2023 and launch it in 2027.

The firm also needs to secure the right to export LNG.

Production could start in 2027

This award follows a preliminary deal A-Property signed with China’s Zhejiang Energy.

Under the deal, Zhejiang Energy would offtake volumes and buy a 10 percent stake in A-Property’s two companies developing the Yakutia LNG project on Russia’s far east.

These include gas and condensate producer Yatek and Globaltek. The latter is developing the technical solutions and the LNG plant that would use fuel from Yatek’s fields.

Moscow-based A-Property, led by Russian businessman Albert Avdolyan, said the project could be worth about 5 billion euros ($5.7 billion), meaning that Zhejiang Energy would spend about 500 million euros on the stake.

Also, the firm plans to develop the project in two stages. At full capacity, it would have the capability to produce 18 million tonnes per annum of LNG.

A-Property also said that the project involves building a 1358 kilometers long pipeline that would connect Yatek’s fields in Yakutia to the LNG plant near Ayan on the Sea of ​​Okhotsk.

The firm expects Yatek’s gas reserves to rise to 567 billion cubic meters in the third quarter of 2022.

These reserves could rise to as much as 1 trillion cubic meters by 2025, which would be sufficient to support the implementation of the LNG project, it said.

- Advertisements -

Most Popular

DSME cancels third LNG carrier order linked to Sovcomflot

South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering has terminated an order for another LNG carrier after a...

Woodside delivers Australian LNG cargo to Germany’s Uniper via Dutch Gate terminal

LNG player Woodside said it had delivered an LNG cargo from its North West Shelf project in Australia to...

QatarEnergy, ConocoPhillips ink long-term LNG deal to supply Germany

State-owned QatarEnergy has signed two long-term contracts with US energy firm ConocoPhillips to supply Germany with liquefied natural gas...

More News Like This

Nigeria’s UTM Offshore plans second floating LNG producer, CEO says

UTM Offshore is looking to develop a second floating LNG production project offshore Nigeria, according to the company’s managing...

CEO: Nigeria’s UTM Offshore to ink FLNG FEED on Wednesday

UTM Offshore would award the front-end engineering and design (FEED) contract for Nigeria’s first floating LNG project on Wednesday,...

Japan’s JGC forms new unit in India

Japan’s LNG engineer JGC is launching a new unit as an operations center based in Chennai, India. At present energy...

Nigeria’s UTM Offshore eyes FLNG FID in Q2 2023

UTM Offshore is now planning to decide on Nigeria’s first floating LNG project in the second quarter of 2023,...