Accessibility Links

Novatek approves Arctic LNG 2 development

05/09/2019
Like postLikeLabel * DEFAULT * en-GB

Follow

Novatek and other project shareholders including Total, CNOOC, CNPC and Japan Arctic LNG have approved the final investment decision (FID) for the Arctic LNG 2 development.

The $21 billion Arctic LNG 2 project is expected to being exporting by 2023, with completion set for 2026
(Image via Novatek)

The FID commits the companies to proceed with financing and engineering contracts worth a total of $21 billion.

The project is aiming to export its first LNG cargo by 2023, with a second train starting up in 2024 and third in 2026.

“I have no doubt that the project will be implemented as planned,” said Leonid Mikhelson, Novatek’s Chief Executive Officer who made the announcement alongside Russia’s Energy Minister Alexander Noval at the Eastern Economic Forum in Vladivostok on Thursday.

Located on Russia’s Gydan peninsula, the project will have a production capacity of 19.8 million tons per year of liquefied natural gas from the Ultrenneye onshore gas and condensate field. 

“Arctic LNG 2 will leverage the success of the Yamal LNG project and will deliver competitive LNG to the markets in four years’ time," said Patrick Pouyanné, Chairman and CEO of Total. 

“Arctic LNG 2 adds to our growing portfolio of competitive LNG developments based on giant low cost resources primarily intended for the fast growing Asian markets.”

The project is said to have very low upstream costs, thanks to the available usage of existing infrastructure and logistics facilities from the nearby Yamal LNG. Three concrete gravity-based structures will be constructed in the Gulf of Ob, each with a 6.6Mt/y liquefaction train, that is said will contribute to significant capex reduction of more than 30% per ton of LNG compared to Yamal.

“Arctic LNG 2, based on its costs, is the largest project in the history of Japanese-Russian relations,” said Hiroshige Seko, Japan’s Minister of Economy, Trade and Industry.

Gas produced from the field will be delivered to international markets by a fleet of ice-class LNG carriers using the Northern Sea Route and transshipment terminal in Kamchatka for cargoes to Asia, and the transshipment terminal close to Murmansk for cargoes destined for Europe.

The project will be a major step for the Russian LNG market. Last year the country was responsible for 8% of the global LNG market; they aim to increase that to 20% by 2035.

Novatek hold a 60% interest in the venture, while Total have a direct interest of 10%, plus an indirect ownership of 11.6% through its 19.4% stake in Novatek (totalling an aggregated economic interest of 21.6% in the project). CNOOC retain a 10% interest, CNPC 10% and Japan Arctic LNG - a Misui-Jogmec consortium - the remaining 10%.

Work on upcoming LNG projects

Find out more about job opportunities for engineering professionals on the biggest LNG projects globally by registering today with Fircroft.

Recent Comments
In future I love to be one of your team player one day. I'm a boilermaker welder by profession. Thank you for taking time to read my comment Morgan
Mfanufikile Morgan Valashiya, 06 September 2019
Add new comment
*
*
*
By commenting on this blog you're agreeing to our terms of use

Comments left should relate to the subject of the above blog. Unfortunately job applications cannot be accepted here.

For job enquiries and applications please use our job search and for technical or account queries please contact us.
Novatek approves Arctic LNG 2 development - Time to read 3 min
Share this article
Like postLikeLabel * DEFAULT * en-GB

Follow

Back to Top

By clicking "Save" you consent to
receiving matching jobs based on the
job/page you are viewing by email from
Fircroft, as detailed in our privacy policy
Fircroft would like to keep you up to date with our current vacancies and latest company updates via email. Occasionally Fircrofts marketing may contain 3rd party or affiliate information, however we will not share your personal data with any 3rd parties without your consent. From time to time, we might contact you to get your views on the service you have received. To help you get the best out of Fircroft, we may personalise them based on your location and how you use fircroft.com
Fircroft would like to keep you up to date with the latest company updates and vacancies via SMS / Text messages
Your consent options above means that Fircroft cannot contact you about any new or alternative career vacancies. If you want Fircroft to only contact you about the role(s) you have applied for please continue, however if you would like to be considered for other positions please allow us to contact you by changing one or more of the above consent.