Further Nyhamna Gas Plant Order for Kvaerner

AS Norske Shell has awarded Kvaerner (KVAER.OL) a project to harmonize the power supply interaction between the Nyhamna gas plant and the national grid, under the current EPCm frame agreement. Planning and execution of the project will commence immediately.

Kvaerner was the main contractor for the initial development of the Nyhamna onshore gas treatment facility, and was in April 2012 awarded an EPCm frame agreement for Nyhamna, which include the Nyhamna Expansion. In addition to the already ongoing work, Kvaerner will now also handle the installation of a reactive power mitigation and circuit breaker (SVS), which is needed to meet the Norwegian grid regulator's requirements for voltage and reactive power excursions.

In connection to the installation of the SVS system, Kvaerner will also be responsible for ground preparation and civil works, and for all interface design and installation. ABB will deliver the SVS system, as a subcontractor to Kvaerner.

"Kvaerner is a leading supplier for onshore oil and gas facilities, and has been a key contractor for seven out of the largest onshore facilities in Norway. At Nyhamna, which is a plant in operation, we see that good planning and precise execution is vital to ensure safe operations and minimum interruption of the valuable gas treatment process. We have a clear ambition to grow Kvaerner's onshore business further. We use the expertise to systematically improve our HSSE performance, productivity and quality, so we can offer our customers predictable project results," says Olav Jan Støve, executive vice president for Kvaerner's business area Onshore.

Detail design will commence immediately. Civil works at site is scheduled to start early third quarter 2015 and Installation will begin summer 2016. ABB's cold commissioning is scheduled to be completed fall 2016.

The contract will be booked as order intake for Kvaerner in second quarter 2015.