Shell extends Wood Group engineering contract for UK gas plants
Wood Group has secured a contract extension from Shell in the UK to deliver midstream engineering and construction services to the St Fergus and Mossmoran gas plants, the company said on Tuesday.
Effective from April 2012, the £75 million, two-year contract includes an option for a further two-year extension. The award marks a continuation of the previous contract awarded to Wood Group in 2007.
The work scope will see Wood Group provide project management, engineering, construction, commissioning and maintenance support as well as fabric maintenance and supply chain management services, the company said.
“We have an established working relationship with Shell that spans two decades and the award of this extension demonstrates Shell’s ongoing confidence in Wood Group PSN,” said Robin Watson, UK managing director at Wood Group PSN.
“The contract enables us to develop our midstream onshore plants business and provide employment for over 500 people,” Watson continued.
“Maintaining a focus on continuous improvement ensures we can support Shell’s rejuvenation project to extend the life of the plants, and deliver plant modifications and maintenance support programs. This is evidence of the confidence our clients have in our business.”
Wood Group says it will draw on the strength of its teams in Aberdeen, Glasgow and Runcorn to deliver on the contract.
Across the UK, Wood Group has a workforce of almost 8,000 personnel with approximately 3,000 onshore and 5,000 offshore workers.
The Shell Northern Plants group consists of St Fergus gas terminal, Mossmoran natural gas liquids plant and Braefoot Bay marine loading terminal, all of which process gas from both the UK and Norwegian sectors of the North Sea.
St Fergus removes ethane, propane and liquids and delivers gas to the national grid.
Mossmorran extracts natural gasoline, ethane, propane and butane. The ethane is piped to the ExxonMobil Fife ethylene plant, whilst the propane, butane and gasoline are shipped to market via the Braefoot Bay marine loading terminal.
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