Novatek and its partners announced Thursday the final investment decision (FID) on the $21.3 billion Arctic LNG 2 project, with first liquefied natural gas (LNG) cargo expected in 2023, Kallanish Energy reports.
The project will produce 19.8 million tonnes per annum (Mtpa) of LNG through three trains. The second and third trains will be launched in 2024 and 2026, respectively. Gas from the onshore Utrenneye field will be processed offshore, using an innovative concept known as gravity-based structures (GBS).
“Novatek has emerged as one of the key players of the global LNG market with the successful launch of Yamal LNG,” CEO Leonid Mikhelson said in a statement. “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.”
The independent LNG producer seeks to hold 10% of the global LNG market, and is planning future projects in the Russian Arctic region.
Preparations for Arctic LNG 2 are progressing well, with the drilling of wells and the construction of roads and field’s production infrastructure already commenced. Over 90% of long-lead items (including cryogenic heat exchangers, gas turbines and the compressors for the liquefaction trains) have been ordered.
Partners in the project have long-term LNG offtake in proportion to their shareholding – Novatek 60%, CNPC 10%, CNOOC 10%, and the Japan Arctic LNG consortium (Mitsui and JOGMEC) 10%.
This post appeared first on Kallanish Energy News.