Rosneft & ExxonMobil Select Contractors for Far East LNG FEED

Source: www.gulfoilandgas.com 9/27/2013, Location: Asia

Rosneft and ExxonMobil selected CB&I UK and Foster Wheeler Energy as contractors for initial phase front end engineering and design (FEED) for a proposed Russian Far East liquefied natural gas project.

Rosneft and ExxonMobil intend to finalize project design by the end of 2014, including front-end engineering and design documentation for the LNG plant, associated facilities and gas pipeline, as well as engineering studies and environmental impact assessment.

CB&I UK and Foster Wheeler Energy will be awarded separate contracts for the initial phase front end engineering and design. The scope of work covers a conceptual project including finalizing details for an LNG plant site, gas liquefaction technology and construction method.

Following submission by the companies of their respective concepts and design, Rosneft and ExxonMobil will evaluate the companies' work product and award a contract for the second phase of FEED.

The plant design capacity of the project is expected to be five million tons per year and may be expanded in the future. The liquefaction plant will receive natural gas feedstock from Rosneft’s reserves in the Far East and other Sakhalin gas resources.

“We are pleased with the technical progress of our joint team of experts from Rosneft and ExxonMobil,” said Rosneft President Igor Sechin. “With our initial FEED contractors on board now we will see the project begin to take shape in a matter of months. We are taking a determined approach with this project to help monetize the gas resources of Russia.”

“We look forward to working with Rosneft and our initial FEED contractors on further evaluation of specific technical and commercial aspects of a potential LNG project,” said Glenn Waller, president of ExxonMobil Russia. ”Special attention will be given during the design phase to reduce the environmental impact on the unique ecosystem of the area and to developing local infrastructure.”

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