Project Profile
Value: US$27 billion
Location: Yamal: Nenets Region (Ru), Drovyany Cape, Russia
LNG Capacity: 16.5 million tonnes per year
Start-up year: Train 1 - 2017, Train 2 - 2018 , Train 3 - 2019
The Yamal LNG project involves the construction of a gas liquefaction plant. The plant’s feedstock will be provided by the Yuzhno and Severo Tambeiskoye fields. Yuzhno Tambeiskoye field’s reserves include up to 1.2 trillion to 1.3 trillion cubic metres of gas and 40 million to 60 million tonnes of condensate. The LNG plant is planned to be launched in three phases of 5.5 million tonnes per year each: the first stage in 2012–2016, the second stage in 2013–2017 and the third stage in 2014–2018. The total LNG capacity of the plant will be about 16.5 million tonnes per annum. The produced gas is expected to be exported to Asia through Russia’s Northern Sea route. The project is being financed by Gazprombank and Credit Agricole CIB. In September 2015, NOVATEK and China’s Silk Road Fund (SRF) have concluded a framework agreement on the acquisition by SRF of a 9.9% equity stake in the Yamal LNG project. The production from the 16.5 mtpa project is scheduled to start in 2017.
Operators:
Yamal LNG LLC, consisting of:
Novatek: Operator with 51% interest
CNPC: 20% interest (from Gazprom Sept 2013)
Total: 20% interest
Silk Road Fund (SRF): 9.9% interest
Contractors:
ABB: to supply power and propulsion equipment for the first of 16 LNG tankers which will serve Russia’s Yamal LNG project. The contract has an additional option for the supply of equipment for another 15 vessels, which will include generators, switchboards, transformers, drives and propulsion units.
BASF: Technology removing carbon dioxide from natural gas
CB&I Lummus: Concept development services
Consortium for Arctic LNG shipping solutions:
Sovcomflot
Shell
Consortoum for engineering, procurement, supply, construction, and commissioning:
JGC
Technip
Daewoo Shipbuilding & Marine Engineering: Build up to 16 ice-class liquefied natural gas tankers
Dietsmann: Awarded the maintenance engineering & inspection services contract
Jan De Nul Group: Dredging works for the 1st phase of the Yamal LNG project
Siemens: Contract to supply gas turbines for a plant that will power the Yamal LNG project
VINCI: Engineering, procurement, supply, construction and commissioning of four cryogenic full-containment LNG storage tanks
Consortium for building of 16 ice-class tankers:
Sovcomflot of Russia
Mitsui OSK of Japan
Teekay LNG Partners (Canada): A 15-year time-charter contract to provide Yamal LNG with conventional LNG transportation services. (September, 2016)
Offshore Oil Engineering Co (unit of China National Offshore Oil Corporation): Contract value is about US$1.6 billion and will construct core modules for the liquefaction process of the Yamal plant. This is also China’s first contract for the construction of core modules for the liquefaction process.
Atlantic Gulf & Pacific Company (AG&P): Contract to build process modules for the Yamal liquefied natural gas project
Pipe Innovation Technologies LLC: In 2012, contract to supply pipes and fittings for the Bovanenkovo-Ukhta and Ukhta-Torzhok projects. Deliveries carried out according to the results of Gazprom tender procedures. The Company delivered 79.212K tons of large-diameter pipes for the Bovanenkovo-Ukhta gas pipeline (second string). Pipes made of K65 grade steel accounted for the main part of deliveries amounting to 77.572K tons. Additionally, small volumes were delivered for the first string of the Bovanenkovo-Ukhta and Ukhta-Torzhok gas pipelines.
ChelPipe Group: In 2014, contract to deliver more than 9,000 tonnes of large-diameter pipes (LDP) for the construction of Rosneft’s Suzun-Vanqor pipeline, part of the Yamal pipeline system. The pipes have a diameter of 530 mm and wall thickness of 9 mm, are made with 09GBYU-grade stainless steel, have a polyurethane foam coating (PUF thickness – 100mm, galvanised shell – 1.5mm), and have an operating pressure of 6.3 MPa. The thermal insulation coating is vital for their successful long-term use. The Suzun-Vanqor pipeline will run through terrain where climatic conditions are harsh, with temperatures ranging from -55 to +50 ° C.
Qingdao McDermott Wuchuan (QMW): Module fabrication contract for Yamal LNG, a liquefied natural gas plant being built northeast of the Yamal Peninsula in Russia. The large contract is being performed in the QMW fabrication facility in Qingdao, China and commenced in the second quarter of 2015, QMW, a joint venture between McDermott and state-owned CSIC. The full scope of work includes fabrication, engineering, procurement, construction including mechanical completion, pre-commissioning, weighing, and load-out. The scope of work also includes the sea-fastening of six units of onshore LNG fractionation pre-assembled unit modules of approximately 13,200 tons. Two of the modules weigh in at approximately 4,630 tons each.
Technip: EPC contract for the process modules (delivered in 2015)
JSC Severstal Distribution (included in the division Severstal Russian Steel): Production and delivery of 3 thousand tons of pipes produced by LLC Severstal TPZ Sheksna for the project Yamal LNG. Severstal TPZ Sheksna manufacture products with diameters from 159 mm to 325 mm in thickness 5-8 mm. The length of the tubes, unlike the previous batch, when produced 16-metre pipes, standard - 12 metres. Products TPZ Sheksna will be used for the manufacture of piles for support facilities such as: facilities for the preparation of the input gas boiler, a complex preparation and liquefied gas and others. The pipes are made of low-alloy, structural steel 09G2S. Total in 2015 TPZ Sheksna will produce for the project about 8 thousand tons of pipes. (December 2015)
AEG Power Solutions: a contract to supply equipment that will ensure uninterrupted power supply
- delivery of more than 50 Protect 8 three-phase UPS units (400 V AC in/384 V DC out), capable of operating under challenging climate conditions. (July, 2016)
TMK (Russia): Supply about 48,000 tonnes of tubular products until contract expiration in 2020. (September, 2016)
Mammoet: Module installation, moving 150 modules and over 1200 smaller items from heavy transport ships to the plant’s foundation (completed in November, 2016)
Siemens: For the maintenance of the equipment at the power plant supplying electricity to the Yamal LNG facilities. Under the contract, Siemens will also provide training of personnel and will provide maintenance service for the entire life of the Yamal LNG project. (March, 2017)
ALE: Contracted to provide module trans-shipment operations
Weir Flow Control France: Engineer and supply critical service safety valves for Yamal LNG.
Sub contractors:
Air Products: Deploys its proprietary LNG technology and equipment for Technip and JGC consortium
GE Oil & Gas: Supplying Technip and JGC consortium with critical turbomachinery equipment
Yokogawa Electric Corporation: Supply integrated control and safety systems for Technip and JGC consortium
Wärtsilä Corporation: 54 dual fuel engines to power 172,600 cbm icebreaking LNG carriers being built for use in arctic conditions to serve the Novatek- operated Yamal LNG project in Northern Russia. The Wärtsilä machinery is capable of operating on liquefied natural gas, heavy fuel oil, or low-viscosity marine diesel oil but LNG will be the main type of fuel to be used.
Transas Group: Contract to equip 9 Yamal LNG carriers with navigation and communications equipment. Under the contract 9 LNG carriers will be equipped with the complex GMDSS equipment and integrated navigation system composed of 12 MFDs. Transas will also provide ice radar devices, fiberoptic gyrocompass (FOG), Doppler indicators, echo sounders and other navigation equipment.
Jutal Offshore Oil Services (through its associated company, Penglai Jutal Offshore Engineering): Contract for works on the construction workload of the two option trains of modules of the Yamal LNG project by Yamgaz. The part awarded to PJOE is package 3, involving total 140,000 tons of three trains of pipe rack modules (including two option trains) with the biggest module being 7,172 tons.
Genoyer: Contract worth US$120 million for the supply of pipes, fittings and flanges
MacGregor (a Cargotec unit): Contract with Daewoo Shipbuilding & Marine Engineering in South Korea to supply a range of Hatlapa deck machinery for ten 172,600 cbm liquefied natural gas carriers. MacGregor will deliver electrically-driven deck machinery, windlasses and mooring winches, all optimised for operations in very low temperatures. Delivery is planned to start in 2017 and continue into 2018. The LNG carriers will transport the chilled gas for the Novatek-operated Yamal LNG project in the Russian Arctic.
Bestobell Marine: Order for its cryogenic globe and check valves for the second LNG carrier in the Yamal series of vessels being built at DSME shipyard in South Korea. Bestobell Marine also supplied its valves to the first vessel that will be owned and operated by Russian owner, Sovcomflot. This vessel will be owned and operated by Japanese shipowner, MOL and will be used as a test vessel to see how the ship and on board equipment perform in Siberian winter sea conditions. Bestobell Marine’s cryogenic globe and check valves will be used in the cargo handling system on the vessel including the main discharge line throttling valves that control the initial flow of LNG from the cargo tanks when pumping first starts. (October, 2015)