France’s gas and oil giant Total, which holds a 20 percent stake in Yamal LNG, said that the Novatek-operated project in the Arctic is 30 percent complete.
The giant LNG project located on Yamal Peninsula in Russia, which includes the construction of a 16 mtpa liquefaction plant, is still expected to ship its first cargo by the end of 2017.
Total said in its strategy update on Wednesday that the company expects its LNG business to be one of the main growth drivers in the next five years.
LNG will play a significant role in Total’s upstream business segment contributing 30 percent of net operating income and 20 percent in production in 2020, according to the update.
The company is also executing its plan to reduce capital expenditures to US$23-24 billion in 2015, from the peak of US$28 billion in 2013.
Total will further reduce investment down to US$20-21 billion in 2016, before returning to a sustainable level of US$17-19 billion from 2017 onwards, it added.
LNG World News Staff; Image: Novatek