Offshore engineering specialist OGN Group has embarked on its first export contract, which will secure 500 North East jobs.
The company has been appointed by Kvaerner to provide complex equipment for the Shell-operated Nyhamma onshore gas plant project.
The start of the 13-month programme of construction was marked with the first cut of steel at OGN’s Hadrian’s Yard facility, where representatives from the three parties involved celebrated the collaboration.
As part of the multi-million pound agreement, OGN will fabricate a series of 18 pre-assembled units - modules containing a range of specialist equipment - for the project, which increases the capacity of the complex in Norway, allowing it to export to the UK via the pipeline to Easington.
Once complete, the 1,200km pipeline will supply 25% of the current total UK gas requirement.
In total, around 4,300 tonnes of fabricated units will be delivered by OGN with individual units weighing up to 886 tonnes.
The plant is connected to the Ormen Lange gas field 120km off the west coast of Norway.
Ormen Lange was developed as a subsea tie back to the Nyhamma Gas Plant where the gas is dehydrated, hydrocarbon dew-pointed and compressed through the Langeled Nord Pipeline to gas markets in the UK.
David Edwards, chief executive of OGN Group, said: “The first cut of steel of any project is always significant, but we are particularly proud of this project as it highlights the latest in a pipeline of work being delivered by OGN Group.
“Our reputation and ability to deliver projects on time and on budget has enabled us to deliver this sustainable approach, which secures employment and supports the North East’s role as a key location for oil & gas industry services.
“We are building momentum at OGN Group working alongside respected international contractors such as Kvaerner, which is a positive sign for this business and our established supply chain.”
He added that the project was particularly important to OGN as it secured 500 jobs and represented an acknowledgement of the skills North East workers could bring to Norway.
“The sector is on the way up,” he said. “We are very fortunate in that we have about 2,000 people here.
“There are lots of skills here, but they do need to be replenished with the younger guys coming through and receiving training.”