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NOVATEK on good track with ARCTIC LNG-2

The LNG eldorado of Yamal Gydan Peninsula

Novatek has huge reserves on the Gydan peninsula, namely the Geofizicheskoye and Utrenneye fields, which combined hold some 7 billion barrels of oil equivalent (boe) of C1+C2 reserves, which is comparable to those of South Tambeyskoye field, the base for Yamal-LNG.

The Geofizicheskoye and Utrenneye fields may generate for Novatek up to 30 billion cubic meter per year (bcm/y) of gas production.

Initiated in September 2014 as a second phase of the Yamal project, under the name of Yamal LNG-2, Novatek learnt from the first experience and decided to change concept for the second phase in preferring offshore gravity-based structures (GBS).
In doing so, Yamal LNG-2 has been renamed Arctic LNG-2, also found under its local name of Geofizicheskoye.


Novatek surrounds itself with the best

For this impressive $20 billion capital expenditure project, Novatek signed  in 2018 a framework agreement on strategic cooperation with the consortium TechnipFMC, Linde and Research and Design Institute for Gas Processing (NIPIGas) for the design of Arctic LNG-2 project.

Novatek also signed an agreement with Linde AG to purchase the license on natural gas liquefaction technology for the Arctic LNG 2 project.

In addition Saipem is expected to work as a subcontractor of the consortium to build the gravity-based platforms near the coast held in place on the seabed with ballast. 

Overall the cost to build offshore structures in the harsh environment of the Gydan Peninsula is lower than conventional onshore structures such as used for Yamal LNG.

Arctic LNG-2 will be developed in three phases of 5.5 million tonnes per year (t/y) each with the following expected dates of completion:
– Phase-1: 2022
– Phase-2: 2023
– Phase-3: 2024
A part of the project is the building of a new plant in Murmansk which will produce equipment and modules for the remote gas instalations.

Arctic LNG-2 development

From the operator side, Novatek partnered with a list long of stakeholders to handle the investment, under the structure:  Total (21,6%), China National Petroleum Corporation (CNPC or PetroChina) (10%), China National Offshore Oil Corporation (CNOOC) (10%), and Mitsui E&P (10%).

Résultat de recherche d'images pour "arctic lng 2""

For its $2.5 billion contract, Saipem will work in consortium with Turkey-based Renaissance. This GBS will support the LNG trains to be built by TechnipFMC-Linde tandem.

Following the final investment decision (FID) made on second half 2019, Novatek and its partners in conjunction with TechnipFMC, its main EPC contractor, awarded most of the sub-EPC packages to sub-contractors :
Bomesc Offshore Engineering secured six modules for Offsides & Utilities
Cosco has been granted of three modules for the LNG trains
McDermott (Qingdao McDermott Wuchuan Offshore Engineering) with China Shipbuilding Industry Corporation (CSIC) won three process complex modules
Penglai Jutal Offshore Engineering booked process, compression and power generation modules
Wison Offshore Engineering is charged of the pipes rack modules

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