Can secure contracts in the billion class – E24

Oil giant Equinor has signed a pre-engineering and design (Feed) contract with Aibel related to the modification work at the Hammerfest LNG plant in connection with the Snøhvit Future project. It appears in a press release.

The contract has an estimated value of NOK 140 million.

– Snøhvit Future is a complex project that will require major modifications to the Hammerfest LNG facility. By awarding the FEED contract to Aibel, we achieved continuity and transfer of expertise, says Equinor’s chief procurement officer, Peggy Krantz-Underland, in a comment.

The work that accompanies the contract will cover two subprojects. The first concerns the construction of an onshore compression plant at the Hammerfest LNG plant. The second is related to the investigation of the possibility of electrifying the Hammerfest LNG plant to reduce Snøhvit’s carbon footprint.

Equinor and its partners are expected to make decisions on concept selection during the fall and late 2020, respectively, leading to investment decisions for the subprojects in the second half of 2021.

Options worth more than 2,500 million.

The agreement also includes options for each of the subprojects in the implementation phase, which includes engineering, procurement, construction and installation for compression and electrification.

The option value of these deals is described as “significant in size”. Aibel claims that they use this term in contracts where the value of the company exceeds NOK 2.5 billion.

– We are pleased to continue in the development of the future LNG plant in Melkøya, where we already have a long and good history of our modification and maintenance contract, says CEO Mads Andersen at Aibel in a comment.

– We are also strong with the experience of several similar assignments, he continues.

The project is run by Aibel’s Asker office, and around 80 employees will be involved in the work on the Feed contract.