May. Arctic LNG 2 will be Novatek’s second large-scale LNG project, following the Yamal LNG start-up in December 2017. Another contract worth $2.2 billion for platform construction was signed with Italian energy contractor … Despite a constant threat of US sanctions, Italian company Nuovo Pignone, owned by American multinational conglomerate General Electric, sealed a $500-million deal for the supply of gas turbines for a new Russian Novatek facility in the Arctic region.. Another lucrative contract worth $2.2 billion for platform construction was signed with Italian energy contractor Saipem and Turkey’s Renaissance … Gazprom and Rosneft have LNG projects in the planning phase or under … Our long-term strategy is to develop our vast low-cost hydrocarbon resources on the Yamal and Gydan peninsulas, as well as to maximize our cost competitiveness across LNG markets.”. Also, work is currently underway to develop the Arctic LNG 2 project while Novatek has declared plans to build the third LNG terminal. 2. * Arctic LNG 2 construction in 2019 subject to final decision * Both projects could pump 70 mln T vs Qatar’s 77 mln T * Tighter U.S. sanctions do not impact technology purchases Russia will become a major LNG supplier, anchored by the Arctic, but will still trail Qatar, the United States, and Australia. The project will employ gravity-based structures (GBS), which consist of concrete legs supporting a platform above a base of oil storage cells. Russia is preparing to make the earliest-ever shipment of liquefied natural gas to Asia, taking advantage of thinning ice in the Arctic Ocean and paving the way for a … Total also owns an 11.6% indirect stake in the project through its 19.4% stake in Novatek, raising its aggregated economic interest to 21.6%. “Novatek has emerged as one of the key players of the global LNG market with the successful launch of Yamal LNG,” noted Novatek’s Chairman of the Management Board Leonid Mikhelson. Some analysts say that there are concerns, however, that the project could be hit with sanctions, as the US continues to ramp up punitive measures against Russia. Maybe a nice photo? The field is located in the Gydan Peninsula in YNAO approximately 70 km across the Ob Bay from Yamal LNG. With a production capacity of 19.8 mtpa, the project would be the largest single project to reach FID, according to Wood Mackenzie. Share on Facebook. LNG, Russia & CIS Region. Arctic LNG 2 could have a capacity of 19.8 million tons, and could go into operation in 2023. Sabina Zawadzki, Reuters - September 30, 2019. Contact our editorial team via email. This article was originally published on Oilprice.com While Russian officials frequently highlight the extent to which Arctic LNG 2 relies on Russian companies and resources, the project has nonetheless attracted a wide range of international partners – despite the continuation of Western sanctions broadly targeting Russia’s oil and gas industry. Arctic LNG-2 represents Novatek’s second and largest LNG project in the region. Download. 2. The facility, when completed, will have an annual capacity of 16.5 million tons of the liquefied fuel. The project will develop the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region. Novatek to operate the Arctic LNG 2 project. Arctic LNG 2 could have a capacity of 19.8 million tons, and could go into operation in 2023. Drilling of production wells, construction of roads and the field’s production infrastructure have been started. Office of the U.S. The Japanese government is pushing Mitsui and Mitsubishi to decide whether they want to take a stake in Arctic LNG-2, according to a March 4 report in the Nikkei Asian Review. Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit. Arctic LNG 2's liquefaction trains will be pre-installed on three concrete gravity-based structures (GBS). Last month, Yamal reached 20 million tons of LNG produced over the lifetime of the project. Capital expenditures to launch the project at full capacity is estimated at $21.3 billion equivalent. The answer lies in principle with the Yamal LNG and Arctic LNG-2 projects, the implementation of which will create the opportunity to export up to 35.7 million tons of LNG per year to Asia and Europe along the Northern Sea Route and create competition for the American LNG. 07.23.2019 PDF Version. Its first line, which will produce 5.5 MMt of LNG a year, is expected to be launched later this year and Yamal will be producing 16.5 MMt by 2019. If the U.S. proceeds with the punitive measures, it is unclear how foreign partners may react, Siluanov said. “Arctic LNG 2 will leverage the success of the Yamal LNG project and will deliver competitive LNG to the markets in four years’ time,” commented Patrick Pouyanné, Chairman and CEO of Total. Novatek sanctions $21.3bn Arctic LNG 2 scheme Operator says first LNG cargo from Russian development is due in 2023 5 September 2019 6:20 GMT Updated 5 September 2019 9:52 GMT LNG projects under consideration by Russian oil and gas producers include Novatek's Arctic LNG 2, Gazprom's Baltic LNG and Sakhalin 2 expansion, and Rosneft's Far East LNG. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter. “We are confident that the accumulated experience of mutual … Gazprom Neft and Shell will each hold a 50% interest in the JV’s charter capital. Spotted a typo? Don't miss out on the latest technology delivered to your email every two weeks. We are a media company, specifically facilitating the maritime and offshore industry. While Russia hopes that “business interests will prevail,” the country can turn the … From the Production & Facilities Technical Director, Remote Survey: A New Normal for Oil and Gas, Total E&P and ExxonMobil Begin TCP-Qualification Project for Risers, Medical Device Engineering Firm Acquires Oil and Gas Test-System Designer, Tellurian Targets Summer Construction at Louisiana LNG, Equinor Signs Altus, Archer for Integrated Wireline Services. In 2015, Shell agreed to invest in the expansion of Gazprom’s Sakhalin II, while in 2017, a Dutch company set up a joint venture with Gazprom to design and construct the Baltic LNG project in the Leningrad Region. Sign up for the OGF newsletter. The LNG plant will consist of three liquefaction trains, with the launch of Train 1 scheduled for 2023. Given this backdrop, Novatek’s second Yamal LNG project – officially ‘Arctic LNG 2’ – aims for three LNG trains of 6.6 mtpa each, based around the oil and gas resources of the Utrenneye field, which has at least 1,138 billion cubic metres of natural gas and 57 million tons of liquids in reserves. ©2003-2021 Society of Petroleum Engineers, All Rights Reserved. Yamal LNG began operation last December and has already shipped two million tons of LNG. The United States has told European allies it plans to impose sanctions on a Russian pipe-laying ship, "Fortuna", involved in construction of the Nord Stream 2 gas pipeline from Russia to Germany, German business daily Handelsblatt reported on Monday. In light of ongoing Western sanctions Novatek has courted companies from South Korea, China, Japan, as well as the Middle East to secure funding for its next polar project, Arctic LNG-2. Trains 2 and 3 are expected to come onstream in 2024 and 2026, respectively. The Japanese government sees it as an opportunity to make progress on a long-running territorial dispute with Russia over a set of islands annexed by Moscow after World War II. After Yamal LNG opened in December 2017, the company previously announced that it aims to launch this new project, with a capacity of 19.8 million tons of LNG per year, by 2023. Washington’s blacklisting of COSCO includes potentially devastating consequences for Russian LNG exports from the Arctic. The project cost $27 billion to construct, excluding the adjacent infrastructure paid for by the Russian Federation. Civilian Security, Democracy, … LONDON & PARIS & HOUSTON--(BUSINESS WIRE)--Regulatory News:TechnipFMC (NYSE:FTI) (PARIS:FTI) (ISIN:GB00BDSFG982) announces the availability of its Arctic LNG 2 Project Overview Presentation in connection with its recently announced award of a major Engineering, Procurement and Construction contract by Novatek and its partners for the Arctic LNG 2 project located in the Gydan peninsula in … The LNG plant will consist of three liquefaction trains with an overall production capacity of 19.8 million tons per year. For now, Russia has just one operational LNG facility, run by Gazprom on the Pacific island of Sakhalin. Arctic LNG 2 FAQ Presentation. Our environment is changing. Novotek is expanding its operations by siting its Arctic LNG-2 project in Gydan, heightening interest in developing commercial reserves on both sides of the Ob River estuary that flows to the Kara Sea and export markets east and west. 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