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Rosneft, Exxon hand out Far East LNG contracts

  |   Sept. 30, 2013 at 6:36 AM
MOSCOW, Sept. 30 (UPI) -- Russian energy company Rosneft and U.S. counterpart Exxon Mobil announced they've awarded engineering contracts for a Far East liquefied natural gas plant.

Contractors CB&I U.K. and Foster Wheeler Energy received two contracts for the initial phase of the front end engineering and design work for the Far East.

"The scope of work covers a conceptual project including finalizing details for an LNG plant site, gas liquefaction technology and construction method," Exxon said in a statement Friday. "The liquefaction plant will receive natural gas feedstock from Rosneft's reserves in the Far East and Sakhalin gas reserves."

Exxon said the plant would have a design capacity to process 5 million tons of LNG per year, a volume that could be expanded in the future.

Far East natural gas demand is expected to increase as Asian economies expand. Japan started taking on more natural gas to offset energy shortages brought on by the Fukushima nuclear disaster in 2011.

"We are taking a determined approach with this project to help monetize the gas resources of Russia," Rosneft President Igor Sechin said in a statement.

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