Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released July 10, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Russia's largest private gas producer, Novatek, has agreed to sell a 10% stake in the massive $21 billion Arctic 2 liquefied natural gas (LNG) project on the Gydan Peninsula within the Arctic Circle to Japan's Mitsui & Company Limited (Tokyo).
The stake could be worth up to $3 billion according to Russia's President Vladimir Putin in a news conference. In 2017, Novatek entered the global gas market by launching the Yamal LNG project and has ambitions to compete with market-leading Qatar in the production of LNG. The Arctic LNG 2 project will develop natural gas and liquefaction facilities with a production capacity of 19.8 million tonnes per year from the conventional onshore gas field located on the Gydan Peninsula. It will see the construction of three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The project is based on the hydrocarbon resources of the Utrenneye field and as of the end 2018, the field's 2P reserves under PRMS totalled 1,138 billion cubic meters of natural gas and 57 million tons of liquids.
Mitsui has invested jointly with Japan Oil, Gas and Metals National Corporation (JOGMEC) at a ratio of 25% and 75%, respectively. Novatek estimates that the project will cost from $21 billion to $23 billion to fully develop, and production of LNG will start from around 2023. LNG from the project will be delivered mainly to Asia and Europe via the Northern Sea Route.
"We welcome the consortium of Mitsui and JOGMEC as partners in our Arctic LNG 2 project," said Leonid Mikhelson, Novatek's chairman of the management board. "Japan has 50 years of experience with importing LNG and is one of the largest LNG consuming countries. Moreover, Japanese companies have extensive experience in implementing LNG projects as well as marketing LNG around the world. The entry of Japanese partners into Arctic LNG 2 will contribute to its successful implementation."
In recent months, Novatek has also sold 10% stakes to French company Total S.A., China National Petroleum Corporation, and a subsidiary of China National Offshore Oil Corporation Limited. Novatek holds a 60% stake in Arctic LNG 2.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The stake could be worth up to $3 billion according to Russia's President Vladimir Putin in a news conference. In 2017, Novatek entered the global gas market by launching the Yamal LNG project and has ambitions to compete with market-leading Qatar in the production of LNG. The Arctic LNG 2 project will develop natural gas and liquefaction facilities with a production capacity of 19.8 million tonnes per year from the conventional onshore gas field located on the Gydan Peninsula. It will see the construction of three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The project is based on the hydrocarbon resources of the Utrenneye field and as of the end 2018, the field's 2P reserves under PRMS totalled 1,138 billion cubic meters of natural gas and 57 million tons of liquids.
Mitsui has invested jointly with Japan Oil, Gas and Metals National Corporation (JOGMEC) at a ratio of 25% and 75%, respectively. Novatek estimates that the project will cost from $21 billion to $23 billion to fully develop, and production of LNG will start from around 2023. LNG from the project will be delivered mainly to Asia and Europe via the Northern Sea Route.
"We welcome the consortium of Mitsui and JOGMEC as partners in our Arctic LNG 2 project," said Leonid Mikhelson, Novatek's chairman of the management board. "Japan has 50 years of experience with importing LNG and is one of the largest LNG consuming countries. Moreover, Japanese companies have extensive experience in implementing LNG projects as well as marketing LNG around the world. The entry of Japanese partners into Arctic LNG 2 will contribute to its successful implementation."
In recent months, Novatek has also sold 10% stakes to French company Total S.A., China National Petroleum Corporation, and a subsidiary of China National Offshore Oil Corporation Limited. Novatek holds a 60% stake in Arctic LNG 2.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
