Yamal LNG control systems contract won by Yokogawa

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Japanese industrial automation and control systems giant Yokogawa Electric Corporation has won the contract to supply integrated control and safety systems (ICSS) for the Yamal LNG project. The company – which supplied control, monitoring and safety systems for Sakhalin Energy, Russia’s only operational LNG project to date – believes the contract will be its largest-ever order for a natural gas project in Russia.

Yamal LNG, one of Russia's largest resource projects, is being undertaken by JSC Yamal LNG, jointly owned by Novatek (60%), Russia’s largest independent oil and gas company, the French energy major Total (20%) and China National Petroleum Corporation (CNPC – 20%).

Final investment decision for the $27 billion, three-train, 16.5 mtpa project – located in north-west Siberia, above the Arctic Circle, in the Yamal-Nenets Autonomous District – was announced in December. According to Yokogawa, the three liquefaction trains are due to be commissioned in 2016, 2017, and 2018.

The ICSS contact was awarded by Yamgaz, a consortium of Technip and JGC Corporation, the engineering contractors responsible for constructing the plant. It will be fulfilled by one of Yokogawa’s many subsidiaries, Yokogawa Europe Solutions.

Yokogawa will supply: integrated production control systems; safety instrumented systems; plant information management systems; integrated device management packages for the monitoring and diagnosis of plant equipment; analytical systems; analyser shelters, and operator training systems. It will be responsible for delivery, engineering, installation, commissioning, and operator training.

Big supplier to the energy industry: Yokogawa has an impressive track record of delivering and engineering automation and control systems for the energy industry in general and the LNG industry in particular.

“Our systems,” says the company, “are in use at 47 gas liquefaction plants and 42 LNG receiving terminals around the world, and are used by or are on order for a total of 54 LNG carriers. Based on this strong track record, we welcome this major role in the Yamal LNG project, look forward to getting started with it, and plan to use this as a springboard to expanding our share of Russia’s LNG-related market."

Russian LNG opportunities: There certainly seems to be a lot of LNG opportunity opening up in Russia. All well as the Yamal LNG FID, recent months have seen a number of other significant developments.

Gazprom has awarded the front-end engineering design (FEED) contact for its proposed liquefaction project at Vladivostok and said in early January that a third train is being actively pursued at Sakhalin Energy. The company has also been making progress with a proposal to construct a project near Leningrad, though that is still in the early stages.

Yet another significant development in 2013 was the announcement by Rosneft and ExxonMobil that they intend to proceed with LNG development at Sakhalin 1.

If all these projects were to come to fruition, Russia’s LNG production capacity would rise from 10 mtpa today to more than 55 mtpa – enough to put it in the top league of LNG producers, along with Australia, Qatar and the United States.

Yokogawa has had a foothold in the Russian market since 1993, when it opened a representative office in Moscow. In 1997 it established a subsidiary there. It went on to win the automation and control systems contract for Sakhalin Energy, a 10 mtpa liquefaction plant that came on stream in 2009. For that project the company delivered control, monitoring, safety, and other systems for two offshore platforms, the onshore production facilities, and pipelines.

Global network: Founded in 1915, the US$4 billion company has a global network of 88 companies in 55 countries. Its biggest business segment is industrial automation and control (IA), but the company also has a substantial test and measurement equipment business segment and various other businesses.

“The IA segment plays a vital role in a wide range of industries including oil, chemicals, natural gas, power, iron and steel, pulp and paper, pharmaceuticals, and food,” says the company.

Related Events:

Yokogawa Electric Corporation will be presenting at the CoTEs seminars at Gastech 2014, Seoul Korea on the following subject:

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