Reports related to this article:
Project(s): View 4 related projects in PECWeb
Plant(s): View 1 related plant in PECWeb
Released September 16, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Russia's largest planned liquefied natural gas (LNG) project, the $21 billion Arctic LNG 2 project led by private gas company Novatek, is to go ahead following a final investment decision (FID) by the partners.
It consists of the development of the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region. The LNG plant will consist of three liquefaction trains, with a production capacity of 6.6 million tonnes per annum (mtpa) of LNG each, with 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. Capital expenditure for the project is estimated at $21.3 billion. Industrial Info is tracking the four key projects.
The Utrenneye field's 2P reserves under PRMS totalled 1,138 billion cubic meters of natural gas and 57 million tons of liquids. The project partners include Novatek (60%), Total (10%), CNPC (10%), CNOOC Limited (10%) and the Japan Arctic LNG consortium of Mitsui & Company and JOGMEC (10%). A consortium of TechnipFMC, Saipem and NIPIGAS (Russia) have been awarded the engineering, procurement and construction contract of the LNG plant. The design and construction of gravity-based structures (GBS) will be built by Russian company SAREN, a joint venture of RHI Russia and Saipem. Novatek said that more than 90% of long-lead items, including cryogenic heat exchangers, gas turbines, and the compressors for the liquefaction trains, have been ordered. Drilling of production wells, construction of roads and the field's production infrastructure are underway.
"Novatek has emerged as one of the key players of the global LNG market with the successful launch of Yamal LNG," stated Chairman of the Management Board Leonid Mikhelson. "Today, we have taken another step forward in our goal to become one of the largest LNG producers in the world by approving the final investment decision on our second large-scale LNG project -- Arctic LNG 2."
Partner Total said that the project "has very low upstream costs." The installation of three concrete gravity-based structures in the Gulf of Ob, which will support the three liquefaction trains "will contribute to significant capex reduction (more than 30% per ton of LNG) compared to Yamal LNG. Also, the close proximity to Yamal LNG will allow Arctic LNG 2 to leverage synergies with existing infrastructure and logistics facilities."
In related news, Novatek has inked a deal with maritime shipping company Sovcomflot to create a joint venture company to build 17 new-generation Arc7 LNG carriers to support the Arctic LNG 2 project. The new vessels are expected to be delivered from 2023 to 2026.
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.
It consists of the development of the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region. The LNG plant will consist of three liquefaction trains, with a production capacity of 6.6 million tonnes per annum (mtpa) of LNG each, with 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. Capital expenditure for the project is estimated at $21.3 billion. Industrial Info is tracking the four key projects.
The Utrenneye field's 2P reserves under PRMS totalled 1,138 billion cubic meters of natural gas and 57 million tons of liquids. The project partners include Novatek (60%), Total (10%), CNPC (10%), CNOOC Limited (10%) and the Japan Arctic LNG consortium of Mitsui & Company and JOGMEC (10%). A consortium of TechnipFMC, Saipem and NIPIGAS (Russia) have been awarded the engineering, procurement and construction contract of the LNG plant. The design and construction of gravity-based structures (GBS) will be built by Russian company SAREN, a joint venture of RHI Russia and Saipem. Novatek said that more than 90% of long-lead items, including cryogenic heat exchangers, gas turbines, and the compressors for the liquefaction trains, have been ordered. Drilling of production wells, construction of roads and the field's production infrastructure are underway.
"Novatek has emerged as one of the key players of the global LNG market with the successful launch of Yamal LNG," stated Chairman of the Management Board Leonid Mikhelson. "Today, we have taken another step forward in our goal to become one of the largest LNG producers in the world by approving the final investment decision on our second large-scale LNG project -- Arctic LNG 2."
Partner Total said that the project "has very low upstream costs." The installation of three concrete gravity-based structures in the Gulf of Ob, which will support the three liquefaction trains "will contribute to significant capex reduction (more than 30% per ton of LNG) compared to Yamal LNG. Also, the close proximity to Yamal LNG will allow Arctic LNG 2 to leverage synergies with existing infrastructure and logistics facilities."
In related news, Novatek has inked a deal with maritime shipping company Sovcomflot to create a joint venture company to build 17 new-generation Arc7 LNG carriers to support the Arctic LNG 2 project. The new vessels are expected to be delivered from 2023 to 2026.
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.
