Leading Yamal LNG contractor Yamgaz is understood to be ready to move more fabrication work on process modules for the Russian project away from the AG&P yard in the Philippines, which industry officials said has been facing capacity constraints since being awarded a Yamal subcontract last year.
“AG&P will be cleared of all ongoing work for Yamal modules,” claimed one source, adding that Yamgaz — a joint venture between Technip, JGC and Chiyoda — will most likely transfer partially-fabricated and outstanding modules to Chinese yards.
However, a spokesman for AG&P said it is continuing to supply critical process modules for the project.
The project remains on schedule, the spokesman said, but added that all details regarding delivery of the modules and the contractual agreement relating to them are confidential.
In June, Yamgaz transferred part of the fabrication work being carried out by AG&P to Qingdao McDermott Wuchuan (QMW), US player McDermott’s Chinese joint venture.
The engineering, procurement and construction contract covers mechanical completion, pre-commissioning, and load-out of six modules.
Last year, AG&P subcontracted to China’s Yangzhou Muyang Group fabrication work on up to 17 process modules weighing a total of 30,000 tonnes.
However, that job was later cancelled in part due to concerns about Muyang’s lack of experience in building sophisticated modules.
Chinese yard sources said China Petroleum Offshore Engineering’s (CPOE) facilities in Qingdao stand a good chance of taking over the remaining fabrication obligations.
CPOE is the only yard that has already finished its own module fabrication commitment for Yamal LNG.
Its yard is expected to be empty after its existing workload on Yamal finishes in April next year.
Yamgaz is to turn a subcontract with fabricator Jiangsu China Nuclear Industry Libert (LBT) into a formal engineering, procurement and construction contract, covering work on some modules for Yamal LNG.
Last year, Sinopacific Offshore & Engineering (SOE) along with LBT as subcontractor, won a deal from Yamgaz to build 310 modules for the Yamal LNG project, weighing a total of 80,000 tonnes.
LBT is fabricating pipes and will carry out assembly work on these modules, while SOE is responsible for steel structure fabrication.