Yokogawa wins contract for crude oil and natural gas development project in Russia

Yokogawa Electric Corporation has been awarded a contract to supply the complete downstream measurement and control facilities for the Sakhalin II crude oil and natural gas development project in the Sakhalin Region of the Russian Far East.

The contract was awarded by Chiyotec Limited, a joint venture between Chiyoda Corporation and Toyo Engineering Corporation. Under the contract, Yokogawa will deliver monitoring and control systems, its Plant Resource Manager plant asset management package and other systems for a natural gas liquefaction plant and crude oil shipment facilities which will be constructed as part of the Sakhalin II project in the Prigorodnoye area of southern Sakhalin.

Sakhalin II is a very large energy development project, with a total budge of US$10 billion. The project is being led by Sakhalin Energy Investment Company Ltd, a joint venture between the Royal Dutch/Shell Group, Mitsui & Co Ltd, and Mitsubishi Corporation. With the conclusion of a series of contracts with commercial-scale utility customers, implementation of the project has been formally initiated.

The crude oil and natural gas produced in northern Sakhalin will be transported through pipelines to southern Sakhalin. There the crude oil will be shipped to utility customers from a crude oil shipment facility and the gas will be converted to liquified natural gas (LNG) at an LNG production facility that will be the largest of its kind in the world, with two liquifaction trains that will have a combined annual production capacity of 9.6 million tonnes.