An FID for Arctic LNG 2 moved closer following a US$7.6Bn engineering, procurement and construction (EPC) contract awarded to TechnipFMC by Russian natural gas producer Novatek and its partners for the LNG export project located in the West Siberia, Russia
Arctic LNG 2 will consist of three trains, each with a capacity of 6.6 mta of LNG, which will be installed on three gravity-based structure platforms.
TechnipFMC will build the three LNG trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards.
Valued at US$23Bn, Arctic LNG 2 project is based on the hydrocarbon resources of the Utrenneye field. Stakeholders in the Arctic LNG 2 project include Novatek with a 60% interest, France’s Total, China’s CNPC and CNOOC and Japan Arctic LNG (JOGMEC/Mitsui), each controlling a 10% stake. An FID on Arctic LNG 2 is imminent.
In late June, Novatek and Japan Arctic LNG signed a sales and purchase agreement for the 10% stake in the project, agreeing to a long-term LNG offtake of 2 mta. The deal was announced at the G20 meeting in Osaka in the presence of Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe.
In June, Japan received its first cargo from Yamal LNG, which has three trains with a total nameplate capacity of 17.4 mta, producing LNG from feed gas from hydrocarbon resources of the South-Tambeyskoye field in the Russian Arctic. Novatek has a 50.1% stake in Yamal LNG, with Total and CNPC, both with 20% interests and China’s Silk Road Fund, the remaining 9.9% interest.
Novatek said the gravity-based structure (GBS) design concept and the manufacture of equipment and materials locally in Russia will decrease the capex per tonne of LNG produced at Arctic LNG 2, ensuring a lower cost for the chilled liquid.
To provide fabrication of the GBS, assembly and installation of topside modules, Novatek is building the Offshore Superfacility Construction Centre in Belokamenka near Murmansk. The centre will have two drydocks to build GBS and facilities to manufacture topside modules.