Wood wins $42m contract to upgrade Norwegian gas processing plant
September 22, 2020 – Norwegian energy company Equinor, on behalf of Gassco, has awarded Wood a contract to provide engineering, procurement, construction and installation (EPCI) services at Kollsnes gas processing plant in Norway.
As per the contract, Wood will upgrade the mono-ethylene glycol (MEG) regeneration handling capacity at the Kollsnes gas processing plant. The company will install three new modules at the plant including a MEG train, a chiller package and a MEG export pump.
Work on the contract will begin in this month, with the installation and the work is expected to be completed during 2022/23.
The work will be delivered by Wood’s engineering team in Norway, using its expertise in process system.
Subcontractor Kvaerner has been given the responsibility of fabrication and construction work which will take place at the Stord Yard. Kværner will also install the equipment at Kollsnes.
Wood Asset Solutions business in Europe, Africa, Asia and Australia CEO Dave Stewart said: “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.”
The contract is expected to strengthen Wood’s position as a contractor in development and upgrade of critical onshore energy infrastructure, building on recently awarded modification scopes for Equinor at the Mongstad refinery.
Kollsnes plant manager Bjarte Padøy said: “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.”
Wood senior vice president in Norway Lars Fredrik Bakke said: “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.”
Located in the municipality of Øygarden, west of Bergen, Kollsnes processes gas from the Troll, Kvitebjørn, Visund and Fram fields. Established in 1996, it has a processing capacity of 144.5 million standard cubic metres (Sm³) of natural gas per day. The plant supplies 40% of all the gas being supplied from Norway to Europe.