Exxon, Rosneft award LNG FEED work to CB&I, Foster Wheeler

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

ExxonMobil (XOM -0.3%) and partner Rosneft (RNFTF.PK) award preliminary front end engineering and design contracts to CB&I (CBI) and Foster Wheeler (FWLT) for a proposed liquefied natural gas facility in Russia's far east.

XOM and Rosneft want to build an LNG plant - likely near Sakhalin Island where the two companies hold leases to produce natural gas - to liquefy 5M tons/year for export because domestic demand in Russia is more than ample.

With its LNG plan, Rosneft is signaling it expects the Russian government to grant it the right to export LNG to international markets, bypassing Gazprom’s (OGZPY.PK) monopoly over gas exports from Russia.