Saipem Commits to Complete LNG Terminal in Świnoujście
The EPC Contractor – a consortium led by Italian company Saipem – committed to complete construction of the 5 bcm LNG Terminal in Świnoujście, Poland, and receive the first LNG cargo yet this year.
‘The first gas cargo, after cooling-down the installation, start-up and tests will be injected into transmission grid and delivered to Polish end-users. The second delivery of fuel designated for operational tests will be supplied in the first quarter of the coming year, while commercial operations of the LNG Terminal will commence in the second quarter 2016’ reads a note released on Wednesday.
The parties agreed on maintaining the same contractual lump sum remuneration due to the EPC Contractor, and higher liquidated damages in case of a default on timely delivery.
“The Contractor assured that the dates specified in the updated detailed schedule of works are reliable are ultimate. The Consortium also assumed additional obligations and liabilities regarding in particular the delivery of LNG for technical purposes,” said Jan Chadam, CEO of Polskie LNG.
According to EPC Contractor, the LNG Terminal in Świnoujście is almost completed - the consortium carried out 98,2% of the agreed works. The companies are also conducting feasibility study for extension of the plant’s capacity by 50% (to 7.5 bcm per year).
‘The LNG Terminal is an important component of Poland’s energy security system. Together with new gas pipelines, interconnectors, virtual and actual reverse flow on the Yamal gas pipeline and with underground storage capacity and domestic production will reinforce the foundations of our gas sovereignty. The project will allow Poland to receive natural gas delivered by sea actually from any place in the world’ reads the note released by Polskie LNG.
On Thursday, ENI-subsidiary Saipem reported it has been awarded new onshore drilling contracts in the Middle East and South America, cumulatively worth approximately $250 million.
‘These include two key contracts awarded by Kuwait Oil Company, the Kuwaiti national oil company, as part of its ambitious plans to develop the country’s oil resources’ reads the note released on Thursday.
The engineering, procurement and construction contract was awarded to a consortium of Saipem, Techint, Snamprogetti, and PBG. Construction started in March 2011. The LNG terminal was scheduled for the end of 2014.