Contract award for Kollsnes Upgrade project

Contract award for Kollsnes Upgrade project

Picture: Kollsnes processing plant west of Bergen, Norway

On behalf of the operator Gassco, Equinor has awarded Wood Group Norway AS 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.

- Kollsnes is an important plant in the gas value chain, and the project will contribute to maintain high gas volumes and regularity on the plant in a long-term perspective. This project will strengthen the security of supply to Europe, as well as give positive ripple effects to the region, says Frode Leversund, CEO in Gassco.

The value of the fixed part of the contract is estimated at about NOK 400 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, whilst 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.

Kollsnes

Kollsnes processing plant is located in the municipality of Øygarden, west of Bergen, and processes the gas from the Troll, Kvitebjørn, Visund and Fram fields. The plant can process up to 144.5 million standard cubic metres (Sm3) of natural gas per day. The plant at Kollsnes was opened in 1996 and plays an important role in export of gas to Europe from the Norwegian continental shelf, with approximately 40% of all Norwegian gas export going via this facility. MEG is used to prevent hydrate formation and corrosion in the pipelines. It is part of the well stream coming to Kollsnes where it is regenerated.

(17.9.2020)