Crown LNG Awards FEED Deal to Aker Solutions for Offshore LNG Terminal in India

Norwegian group Crown LNG has signed a deal with Aker Solutions as the main contractor to deliver a concrete gravity-based structure (GBS) for Crown’s offshore LNG terminal at Kakinada, India.

Under the agreement, Aker Solutions and key subcontractors will first conduct the front-end engineering and design for the LNG terminal. 

 Aker Solutions’ scope includes technical development of the concrete foundation and topsides, as well as the pipeline between the offshore regasification terminal and the onshore gas grid. While the concept remains to be matured, the GBS is expected to be more than 200 meters long, around 60 meters wide, and 40 meters tall. The topside will consist of LNG regasification facilities, supporting systems, living quarters, helideck, cranes, and an electrical and instrument building. 

Siemens Energy and Wärtsilä Gas Solutions have been assigned as key subcontractors to Aker Solutions for the project. Siemens Energy will develop the power generation and distribution system as well as the platform control system, while Wärtsilä will develop the re-gasification system for the LNG terminal.

The order includes an option for engineering, procurement, construction,  installation, and commissioning (EPCIC) of the LNG terminal, that will  be confirmed upon final investment decision which is expected by the end of 2022.

“This LNG terminal will be based in a location exposed to monsoon seasons, which requires partners with the best track record from harsh environment projects. This is why we have engaged Aker Solutions, Siemens Energy, and Wärtsilä,” says Gunnar Knutsen, CEO of Crown LNG AS, which is Crown LNG’s project services company.

Crown LNG has an exclusive agreement to finance, build and lease to its client KGLNG, a subsidiary of East LNG. KGLNG is the company that has the license to establish the LNG receiving terminal at Kakinada while East LNG is the holding company that owns KGLNG. Crown LNG has also been contracted for operations and management of the facility, through the 25-year lease period.

The offshore LNG receiving terminal will be located offshore approximately 19 kilometers northeast of Kakinada on India’s east coast.

The terminal will be developed as a gravity-based concrete structure that sits on the seabed. 

"This solution will be able to withstand the harsh weather conditions the Indian monsoon season presents, which enables a 365-day operating window for the terminal. KGLNG’s license has recently been updated to reflect Crown LNG’s solution and 365-days operational window," Crown LNG said.

"Aker Solutions has designed and built concrete GBSs in the rough North Sea and Arctic waters for the past four decades and has also delivered the world’s first LNG offshore terminal in concrete, the Adriatic LNG Terminal," Crown LNG said.

“We are pleased to be a part of this very exciting project to develop the Kakinada LNG terminal. Aker Solutions is recognized as the world’s leading contractor for advanced concrete structures for marine projects. In the past, we have delivered some of the largest and most complex offshore concrete installations. As we embark on this important energy project, we will tap on more than 40 years of concrete experience, including Troll A, Hebron, Sakhalin I & II and Adriatic LNG,” said Sturla Magnus, EVP Topsides & Facilities  Aker Solutions.

Under the agreement, Aker Solutions will be overall responsible for technical development and execution of the project. This includes the GBS itself as well as all topsides facilities that are not delivered by Wärtsilä and Siemens Energy. Aker Solutions will also be responsible for construction, including identifying a construction yard in India where construction of the GBS will take place, plus installation and hook-up the topsides process and utilities.