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Arctic LNG 2 Project on Schedule for 2023 Startup

Despite the ongoing impact from the COVID-19 pandemic, NOVATEK said its $21.3-billion Arctic LNG 2 project in Russia is on schedule, with expectations that it will start on time. Following a first joint meeting with the chief executives of project partners Total, CNPC, CNOOC, Mitsui, and JOGMEC, NOVATEK said overall progress for the project is estimated at 19%, with concrete casting of the first gravity-based structure (GBS) platform estimated at 37% completion.

The company said the module fabrication yards are working at full capacity, and contractors for procurement, and construction are fully mobilized, alongside supply contracts that are being fulfilled.

Nine production wells have been drilled at the Utrenneye field in Russia’s Ob Bay with three drilling rigs in operation.

NOVATEK said significant progress has been made in contracting LNG volumes from the 19.8-mtpa project. The company signed 15-year supply agreements with Vitol and Repsol in 2019.

CEO Leonid Mikhelson said in June 2019 the company expects to send around 80% of production from the project to the Asia-Pacific region. Mikhelson also said the company expected to sell a minimum of 50% of output under long-term contracts.

The meeting comes less than a month after load engineering firm Mammoet was awarded a contract for unloading, transportation, and installation for the project. The Arctic LNG 2 project will comprise three liquefaction trains; the launch of Train 1 is scheduled for 2023.

 

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