Shell extends Wood Group PSN contract

London - Wood Group PSN 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 £75 million, two-year contract, effective from April 2012, includes an option for a further two-year extension. The deal builds on a previous contract awarded to Wood Group in 2007.

The work scope will see Wood Group PSN provide project management, engineering, construction, commissioning and maintenance support as well as fabric maintenance and supply chain management services.

Wood Group PSN said it will use its teams in Aberdeen, Glasgow and Runcorn to deliver this contract. The company has a UK workforce of almost 3,000 onshore and 5,000 offshore workers.

The contract enables us to develop our midstream onshore plants business and provide employment for over 500 people, according to Robin Watson, UK managing director at Wood Group PSN.

“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 programmes,” said Watson.

The Shell Northern Plants 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 & 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 Exxon Mobil Fife ethylene plant, whilst the propane, butane and gasoline are shipped to market, via the Braefoot Bay marine loading terminal.