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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Russia's largest independent natural gas producer, Novatek, has contracted all of the supply from its under-development Arctic LNG 2 export project north of Siberia on the Gydan Peninsula.
The company said that it has concluded 20-year sales and purchase agreements (SPA) with the project's participants for all of its future capacity of nearly 20 million tons of LNG. Industrial Info is tracking eight separate projects there worth an estimated $21 billion. The project received the green light in the summer of 2019. For additional information, see September 16, 2019, article--Russia's Largest LNG Project Gets Green Light.
Arctic LNG 2--Russia's largest LNG project--envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each, as well as cumulative gas condensate production capacity of 1.6 million tons per annum. The total LNG capacity of the three liquefaction trains will be 19.8 million tons. First deliveries will begin in 2023 when the first train is commissioned.
Industrial Info is tracking almost $86 billion worth of LNG projects across Europe and Russia.
"The long-term offtake agreements between Arctic LNG 2 and its participants ensure the future revenue stream from LNG sales and de-risks the Project," noted Leonid Mikhelson, Novatek's chairman of the management board. "This represents one of the most important milestones in attracting the Project's external financing that will be completed in 2021."
Novatek controls a 60% stake in the project, with Total SE, China National Offshore Oil Corporation, China National Petroleum Corporation, and Japan Arctic LNG each holding 10%. The company has said that it will put up its 60% stake in Arctic LNG 2 as collateral for long-term financing of the project. It expects to raise $11 billion in external financing in the first half of this year. The company and its partners invested about $4 billion in 2020 and expect that figure to rise by 50% to $6 billion this year.
Novatek also operates the 17.4 million-metric-ton-per-year Yamal LNG terminal on the Yamal Peninsula in northern Russia. Industrial Info is tracking a $1 billion project there to add a fourth LNG liquefaction train, which is expected to be complete before the end of the year.
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. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The company said that it has concluded 20-year sales and purchase agreements (SPA) with the project's participants for all of its future capacity of nearly 20 million tons of LNG. Industrial Info is tracking eight separate projects there worth an estimated $21 billion. The project received the green light in the summer of 2019. For additional information, see September 16, 2019, article--Russia's Largest LNG Project Gets Green Light.
Arctic LNG 2--Russia's largest LNG project--envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each, as well as cumulative gas condensate production capacity of 1.6 million tons per annum. The total LNG capacity of the three liquefaction trains will be 19.8 million tons. First deliveries will begin in 2023 when the first train is commissioned.
Industrial Info is tracking almost $86 billion worth of LNG projects across Europe and Russia.
"The long-term offtake agreements between Arctic LNG 2 and its participants ensure the future revenue stream from LNG sales and de-risks the Project," noted Leonid Mikhelson, Novatek's chairman of the management board. "This represents one of the most important milestones in attracting the Project's external financing that will be completed in 2021."
Novatek controls a 60% stake in the project, with Total SE, China National Offshore Oil Corporation, China National Petroleum Corporation, and Japan Arctic LNG each holding 10%. The company has said that it will put up its 60% stake in Arctic LNG 2 as collateral for long-term financing of the project. It expects to raise $11 billion in external financing in the first half of this year. The company and its partners invested about $4 billion in 2020 and expect that figure to rise by 50% to $6 billion this year.
Novatek also operates the 17.4 million-metric-ton-per-year Yamal LNG terminal on the Yamal Peninsula in northern Russia. Industrial Info is tracking a $1 billion project there to add a fourth LNG liquefaction train, which is expected to be complete before the end of the year.
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. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
