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Tenders and Contracts
The main tenders have been completed and key contracts signed as a part of the project implementation. In particular, the EPC contract has been awarded to the joint venture of Technip, JGC and Chiyoda. A slot reservation agreement was signed with Daewoo Shipbuilding & Marine Engineering Company for the construction of up to 15 ARC7 ice-class LNG carriers. Selected ship owners have placed orders for the first carriers and steel cutting was done at the end of 2014. The orders for long-lead items (including cryogenic heat exchangers, gas turbines, compressors for the liquefaction trains) have been placed.
Long-term contracts for 95% of LNG volumes have been placed.
Four (4) drilling rigs are in operation at the field. As at the end of January 2017, 77 production wells have been completed, substantially exceeding the 58 production wells required for the launch of the first LNG production train.
Operation of material offloading berths in the port of Sabetta began, which enabled to open first winter navigation in October 2013 and ensure year-round supplies of construction cargos.
In 2015, dredging was performed in the port harbor, approach and sea channels. Overall volumes of dredged sand totalled more than 16 million cubic meters. The year-round use of the Sabetta port received more than three (3) million tons of cargoes (up 50% year-on-year), delivered by 190 marine ships and 317 river barges. A two (2) km Southeastern ice barrier was being constructed to protect the port harbor. LNG and stable gas condensate shipment pipe rack was being built at the ice barrier.
The plant's first module was delivered to the site in September 2015, and delivery of other long-lead items also started during the past year. Among the items delivered to the Sabetta construction site by the end of the 2015 there were seven (7) LNG plant modules, a cryogenic heat exchanger (key element of gas liquefaction technology) and the full equipment package for compressor lines of the plant's first and second trains, boil-off gas compressors, a backup heater, 46 packages of steel work pipe racks, six (6) packages of piping spools, power plant turbines and other equipment. The unloading operations for oversized equipment in the Sabetta port and its transportation to the installation site were successfully streamlined.
By the end of the reporting year, over 20,000 foundation piles for the LNG plant were installed, over 2,000 pile caps were installed on the piles, and more than 17,000 cubic meters of concrete was poured for the foundation. Compressor equipment for the first train, seven (7) modules and the backup heater were installed on the prepared concrete foundations, as well as over 6,000 tons of steel work pipe racks. The construction of a power plant with a rated capacity of 376 MW was underway: four (4) gas turbine units with a capacity of 47 MW each were installed on the concrete foundations. The outer concrete walls were completed as well as the installation of the roof on the project’s four (4) LNG tanks, and the work on installing the internal multi-layer walls was underway.
Construction on the first LNG train was 87% completes at end of 2016.
Airport Sabetta serves regular flights from Moscow, Samara and Novy Urengoy from February 2015.