McDermott’s joint venture (JV) Qingdao McDermott Wuchuan Offshore Engineering (QMW) has won a contract to provide three complex modules for the Arctic LNG 2 Project.

The project is located in the Yamal-Nenets Autonomous Region in Russia.

QMW will be responsible for procurement, construction, pre-commissioning scope and fabrication engineering of three pre-assembled unit complex process modules of Arctic LNG 2 project. The contract has been awarded as part of McDermott’s past work for Yamal LNG in fabricating large process modules.

McDermott Asia Pacific senior vice-president Ian Prescott said: “This award recognises QMW’s experience and excellent performance in the Arctic on an earlier Yamal LNG project. It is further evidence that QMW is a tier one module fabricator in the LNG market.

“Fabrication will be completed in QMW’s mega module workshop which provides increased certainty for safety, schedule and successful project delivery.”

Fabrication for the modules is scheduled to start by the end of this year and is expected to be completed in mid-2022.

McDermott said that the work will take place at its QMW joint venture in China. The value of the contract is expected to be in range between $50m and $250m.

Novatek and its partners recently made the final investment decision (FID) on the $21.3bn Arctic LNG 2 project and first LNG deliveries are expected in 2023. The project, which will consist of three trains, is expected to produce 19.8 million tonnes per annum (mtpa) of LNG. The second and third trains are anticipated to be launched in 2024 and 2026, respectively.

In August 2019, Saipem agreed to participate in a JV for the realisation of the Arctic LNG 2 project, for a share worth approximately $2.4bn (€2.2bn).