Arctic LNG 2 partners make FID

Arctic LNG 2 partners headed by the Russian largest independent natural gas producer Novatek have reached the final investment decision on the $21.3 billion project on the Gydan Peninsula. 

The project consists of the development of the Utrenneye field and the construction of a natural gas liquefaction plant in the Russian Arctic region.

The participation in the project also provides for the long-term LNG offtake by all the participants in proportion to their respective ownership interests, Novatek said in its statement.

The LNG plant will consist of three liquefaction trains with an overall production capacity of 19.8 million tons per annum. The launch of LNG train 1 is scheduled for 2023, with LNG trains 2 and 3 to be launched in 2024 and 2026, respectively.

Arctic LNG 2 will use gravity-based structures (GBS) and provides for localizing the majority of equipment manufacturing and materials fabrication in Russia.

The GBS construction, assembly and installation of LNG modules will be performed at Novatek-Murmansk’s LNG construction center located near Belokamenka in the Murmansk Region.

A consortium of TechnipFMC, Saipem and Nipigas (Russia) was awarded the contract on engineering, procurement and construction of the LNG plant, with the design and construction of gravity-based structures to be built by the Russian company Saren, a joint venture of RHI Russia and Saipem.

As of today, more than 90 percent of long-lead items (including cryogenic heat exchangers, gas turbines, and the compressors for the liquefaction trains) have been ordered, Novatek said, adding that drilling of production wells, construction of roads and the field’s production infrastructure have been commenced.

The project participants include Novatek (60 percent), Total (10 percent), CNPC (10 percent), CNOOC Limited (10 percent) and the Japan Arctic LNG, consortium of Mitsui & Co and JOGMEC (10 percent).