On behalf of the operator Gassco, Equinor has awarded Wood an engineering, procurement, construction and installation (EPCI) contract for the MEG Upgrade project at Kollsnes.
Under the EPCI contract, Wood will upgrade the MEG (mono-ethylene glycol) regeneration handling capacity at the Kollsnes gas processing plant where Equinor is the technical service provider. Three new modules will be installed at the plant, including a MEG train, a chiller package and a MEG export pump.
“The project will help maintain high regularity and maximum capacity at the plant in a long-term perspective and will further strengthen the work environment and safety in MEG handling at Kollsnes. I am also pleased that this will increase activity at Kollsnes, which is important to the region,” says Bjarte Padøy, plant manager at Kollsnes.
Dave Stewart, CEO of Wood’s Asset Solutions business in Europe, Africa, Asia and Australia, comments, “We are delighted to be able to continue our long-term, global relationship with Equinor with the addition of this EPCI contract. This award supports our strategic focus on strengthening our position in the onshore energy market in Norway and enables us to draw on our rich heritage and experience that exists across our global organisation.”
Lars Fredrik Bakke, Wood’s senior vice president in Norway, adds, “Delivering the MEG upgrade at the Kollsnes process plant allows us to leverage our market-leading expertise in downstream processing to support Equinor’s technical operations of this critical piece of onshore energy infrastructure, through which 40% of all Norwegian gas export flows. Our breadth of experience in the Norwegian energy sector and our close client partnership positions us for continued growth in the downstream sector, both with Equinor and across the broader Norwegian market.”
The value of the fixed part of the contract is estimated at about NOK 400 million (roughly USD 42 million). The contract includes options for potential future work.
The contract work will start up in September 2020 with installation and completion at Kollsnes during 2022/23.
The contract is expected to result in approximately 150 man-years during the project’s life. Management and engineering will be performed by Wood’s office in Sandefjord, with support from the company’s global organisation.
The fabrication and construction work is subcontracted to Kværner and will take place at the Stord yard. Kværner will also perform the installation work at Kollsnes.