Member Article

Sheffield engineering group collaborates with South Korean firm in multimillion Russian project

Sheffield-based Bestobell Marine, part of the President Engineering Group Ltd (PEGL), has secured a major new order that could become a multimillion dollar deal for the company.

The order is for its cryogenic globe, check and unique FLIV valves with South Korean shipbuilding company DSME.

The order is for a complete ship set of cargo valves to be installed on the first LNGC vessel, that is part of a larger series of 16 vessels, and that will be built for the widely publicized Yamal LNG project, under construction in Siberian Russia.

Three shipowners have been selected to own and operate the vessels needed for the project. They are Sovcomflot (SCF); Teekay and Mitsui OSK Line (MOL), and the vessel orders will be split between the three companies. Bestobell is well placed to secure contracts with DSME to supply the cryogenic globe and check valves for all 16 vessels.

Mark Henley, managing director for Bestobell, part of the President Engineering Group Ltd, said: “This order has the potential to be a major game-changer for us and will see us significantly increase the Bestobell Marine side of the business in the future.

“Russia is a relatively new area for Bestobell Marine, but one where we see huge potential in developing new business opportunities using our expertise in valves for LNG carriers.”

The Yamal LNG project is one of the largest industrial projects in the Arctic, which will eventually involve the drilling of more than 200 wells, the construction of three LNG trains, each with a capacity of 5.5 million tonnes per year, plus an extensive gas terminal.

It will also involve the commissioning of the 16 ice-breaker tankers (a world first), each able to transport 170,000 m³.

The Yamal LNG project is based in the estuary of the Ob River in the Russian Arctic, which is ice-bound nine months of the year.

The project ensures production and marketing of these vast natural gas reserves and has involved the construction of a major new maritime route for transporting liquefied natural gas to Europe and Asia. The project is expected to produce 16.5 million tonnes of liquefied natural gas after 2018.

The contract comes just three months since Bestobell Marine secured a major order for its cryogenic globe, check and FLIV valves with DSME for five ship sets of valves that will be fitted on a LNG carrier for Teekay LNG Partners LP of Canada.

This was posted in Bdaily's Members' News section by Clare Burnett .