McDermott International Inc.'s China-based joint venture Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd. secured a contract for the PAO Novatek-led Arctic LNG 2 project in Russia.
The contract includes the fabrication of three pre-assembled unit complex process modules. Qingdao McDermott would manage the engineering, partial procurement, construction and pre-commissioning scope of the fabrication work, according to a Sept. 17 news release.
Work under the contract is expected to start at the end of the year and finish in mid-2022.
Based on McDermott's share of the award through Qingdao McDermott, the contract's value is estimated to be between $50 million and $250 million, classifying it as a "large" contract.
The Arctic 2 LNG project, located in the Yamal-Nenets Autonomous region in Russia, recently obtained a final investment decision from Novatek and its project partners. Capital spending on the project is estimated at $21.3 billion to launch it at full capacity, making it the largest project to receive a final investment decision in the past 15 years, according to analysts at IHS Markit. The LNG plant is designed to have three liquefaction trains with a total production capacity of 19.8 million tons per annum.
McDermott provides engineering, procurement, construction and installation services for offshore oil and gas projects. Qingdao McDermott is a 50/50 joint venture of McDermott and China Shipbuilding Industry Corp.
