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SNC awarded midstream EPC contract

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World Pipelines,

SNC-Lavalin is pleased to announce that it has been awarded a 10 year build-own-operate (BOO) oil and gas service contract for the engineering, procurement, construction (EPC) and operations of multiple gas compression and dehydration facilities in the Permian Basin of the United States, with an approximate value of US$100 million from Crestwood Equity Partners LP.

The services will be provided by the Production and Processing Solutions service line within SNC-Lavalin's oil and gas sector, and will consist of the design, construction and operations of over 100 000 hp of compression, inlet separation and filtration, gas dehydration, and station measurement and controls. All stations will be constructed on greenfield sites.

"We are proud to have been awarded this project to deliver and operate a significant level of compression facilities in the US market for Crestwood," said Martin Adler, President, Oil & Gas, SNC-Lavalin. "While the midstream market faces a number of challenges, our quick-to-monetise solutions and performance-based fee structures are helping our customers continue to invest in existing and new assets, while expediting cash contribution from these assets."

Steve Gill, CEO of Production and Processing Solutions, added: "The Build-Own-Operate model, in addition to our traditional engineering and equipment services, has been greatly strengthened as part of SNC-Lavalin. Our Production and Processing Solutions service line, previously known as Valerus, has a wide range of applications globally for clients seeking innovative solutions for production and processing, scaling from small wellhead facilities up to complete gas plant facilities. I am especially pleased with this award, as it is strategically located in the heart of the Permian Basin, which is currently the most active play in the US market, further enhancing our future opportunities in the region by leveraging our operations infrastructure."

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