Serinus Energy has 'no confidence' in progress at Moftinu

26th Nov 2018 14:32

(Sharecast News) - Serinus Energy updated the market on its Romanian operations on Monday, confirming that the Moftinu gas plant was still waiting for the installation of the low temperature separation (LTS) unit and the triethylene glycol (TEG) unit.The AIM-traded firm had said on 18 October that the Moftinu plant was complete and able to operate at pressure with sustained production, but was waiting for the installation of the LTS and TEG units then as well.It also said then that it had been provided with a timeline by its EPC contractor that the factory acceptance tests for the units would be conducted at the manufacturing facility in Canada on or around 17 November, and the units would be loaded onto a freighter for shipment to Bremerhaven on or around 22 November, with installation, commissioning and production anticipated for December."Following recent communication with its contractor, the company - while it continues to believe that once the units are installed it will be in a position to move to full production - now has no confidence in its contractor to achieve the previously communicated timetable," Serinus said on Monday.The board said it was making "every effort" to expedite the units to site with a view to achieving first production as soon as possible."At the company's insistence, the contractor has sent a representative to the manufacturing facility to provide a thorough in-person evaluation of the achieved progress of the units, the status and completion plan going forward, and a definitive date of delivery of the units," the board said."The EPC contractor has reported back to the company that while progress on the units has been achieved in regards the spooling, assembly, hydro testing, and painting of the units, the installation of the insulation and electrical still needs to be completed prior to the factory acceptance tests of the units."