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Positive FID taken on Arctic LNG 2

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LNG Industry,


Total has announced that, along with Novatek and the other project shareholders, it has taken a positive final investment decision (FID) on the Arctic LNG 2 project located on the Gydan peninsula, Russia.

According to the statement, the project will have a production capacity of 19.8 million tpy, and is expected to export its first LNG cargo by 2023. The second and third trains are expected to startup by 2024 and 2026.

Total has a direct 10% interest in Arctic LNG 2 alongside Novatek (60%), CNOOC (10%), CNPC (10%) and a Mitsui-Jogmec consortium, Japan Arctic LNG (10%). In addition to this, Total also owns an 11.6% indirect participation in the project through its 19.4% stake in Novatek. Therefore, it has an aggregated economic interest of 21.6% in the project.

Patrick Pouyanné, Chairman and CEO of Total, 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.

“Arctic LNG 2 adds to our growing portfolio of competitive LNG developments based on giant low cost resources primarily intended for the fast growing Asian markets.”

Total claims that the Arctic LNG 2 project has very low upstream costs with the development of the giant resources from the Utrenneye onshore gas and condensate field. It will utilise three concrete gravity-based structures in the Gulf of Ob. On each of these structures will be located a 6.6 million tpy liquefaction train. Total claims this will help to significantly reduce CAPEX. Also, the close proximity to Yamal LNG will allow Arctic LNG 2 to leverage synergies with existing infrastructure and logistics facilities.

LNG cargoes from the project will be delivered to global markets by ice-class LNG carriers that will be capable of using the Northern Sea Route, and the transshipment terminal in Kamchaatka for cargoes destined for Asia and the transshipment terminal close to Murmansk for cargoes destined for Europe.

Read the article online at: https://www.lngindustry.com/liquefaction/05092019/positive-fid-taken-on-arctic-lng-2/

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