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Offshore engineer wins gas deal
Updated 3:51pm Monday 19th May 2014 in Business
A NORTH-EAST engineering firm has won a major gas plant contract which will safeguard hundreds of jobs.
OGN Group, based at the former Hadrian shipyard, has secured a new contract from Kvaerner for the Shell-operated Nyhamma onshore gas plant project in Norway.
The firm declined to reveal the precise value of the deal, but as part of the multi-million pound agreement, OGN will make 18 pre-assembled units (PAU’s) and pre-assembled racks (PAR’s) for the, which delivers gas supplies to the UK.
It follows confirmation last week that Heerema Fabrication Group, in Hartlepool had created 300 jobs to increase work on a North Sea gas platform project. The firm needs the additional workers to build platforms for the North Sea's Cygnus gas field.
In total, about 4,000 tonnes of fabricated units will be delivered by Wallsend-based OGN, with individual units weighing up to 670 tonnes.
The 13-month project, which begins in August, incorporates the project management and fabrication of the units including installation of equipment, electrical and piping systems. OGN will also undertake mechanical completion and pre-commissioning works.
The project will help to maintain 600 jobs on the bank of the River Tyne, by helping to provide a pipeline worth of work alongside existing contracts being delivered by the company.
David Edwards, the chief executive at OGN Group, said: “Winning this significant project highlights the momentum that we are building at OGN through the delivery of high-profile oil & gas fabrication projects.
“Following on from securing the EnQuest Producer FPSO project and the fabrication of an 800 tonne process module for the North Sea, we are proud to bring another important contract to the North East awarded by another highly respected international contractor.
“This project is part of our strategy of securing a sustainable project pipeline for the business that will support our skilled workforce and our established supply chain.”
The defunct Tyneside yard came back to life in 2010 following a major investment by OGN