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Final investment decision for Yamal LNG project

LNG Industry,


Novatek has announced that the Yamal LNG Board of Directors approved a final investment decision (FID) for the Yamal liquefied natural gas (LNG) project. The project consists of the development of the South Tambeyskoye gas condensate field and the construction of a natural gas liquefaction plant on the Yamal Peninsula. Novatek and Total, shareholders of Yamal LNG, had already issued relevant approvals.

The LNG plant will consist of three liquefaction trains with a total capacity of 16.5 million tpa. Commissioning works at the first liquefaction train is schedules to being in 2016, with the planned commercial launch of the first LNG train in 2017. The project also includes the construction of transport infrastructure including a sea-port facility and an international airport located at Sabetta, north east of the Yamal Peninsula. A maximum of 16 ice-class LNG carriers will be used to transport LNG to international markets.

As part of the project implementation, the main tenders have now been completed and key contracts have also been signed. The EPC contract was awarded to the joint venture of Technip and JGC. Overall expenditures of the project are estimated at US$ 26.9 billion, of which US$ 2.6 billion has already been financed by shareholders.

Orders for long-lead items have now been placed including cryogenic heat exchangers, gas turbines and compressors for the trains. Eight production wells have been drilled and over 3100 construction workers are on site at the Yamal Peninsula. Project updates include:

  • Preparation of the construction site for the LNG plant is complete
  • Piling of the foundation for tanks has begun
  • Construction of the sea-port and airport has reached an advanced stage
  • Over 70% of the expected LNG production output has already been contracted.

Novatek board chairman, Leonid Mikhelson, commented: “The Yamal LNG project is a transformative project for Novatek and a key element in the overall strategy to develop the natural gas resources on the Yamal Peninsula and increase the output of LNG from Russia. In a relatively condensed period of time we have accomplished quite a lot of work with the project establishing a very good base to move forward with confidence to implement our plans”.

Yves-Louis Darricarrère, president of upstream operations at Total, stated: "The successful sanction of Yamal LNG strengthens Total's global portfolio to sustain post-2017 production over the next decades and further increases our presence in a high potential region of Russia in terms of gas resources. Yamal LNG has made tremendous progress in recent months and Total will join forces with Novatek by harnessing all of its expertise and effort to deliver this top-tier LNG project within schedule".

According to the PRMS reserve standards, the proven and probable reserves of the South Tambeyskoye field as of the end of 2012 were appraised at 907 billion m3 of natural gas. Yamal LNG is a joint venture currently owned by Novatek (80%) and Total (20%).

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19122013/yamal_lng_final_investment_588/


 

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