Novatek, Rosseti ink Murmansk LNG power supply pact

Russian LNG exporter Novatek is moving forward with its plans to develop the Murmansk LNG project and has signed a deal with compatriot firm Rosseti to secure power for the development.

According to a statement by Novatek, the two firms signed on Tuesday a strategic partnership agreement to supply power to the Murmansk LNG project.

Novatek said the agreement would enable “timely start of power supply to the company’s prospective large-scale Murmansk LNG project, whose distinctive feature is the use of electric drives for process compressors instead of gas turbines.”

The company’s chairman Leonid Mikhelson said in the statement that Novatek’s strategy “envisages significant ramp up of LNG production, and we have already started implementing our next large-scale project in the Murmansk region.”

“For the Murmansk LNG project, we have chosen to use electricity rather than gas to drive the liquefaction process. The solution will help to speed up the project’s implementation while utilizing technology from Russian suppliers, and will also ensure a strong environmental performance of the project by reducing carbon emissions,” he said.

Large LNG production capacity

Novatek currently exports LNG via its 17.4 mtpa Yamal LNG plant and the mid-scale facility with a capacity of 660,000 tons in Vysotsk.

The firm is also building the 19.8 mtpa Arctic LNG 2 plant and recently completed the installation of the first of three trains which will serve the project.

Novatek is planning to start commercial operations from this unit in the first quarter of 2024.

Reports previously said that the Murmansk LNG project would have three trains and a total capacity of about 20.4 mtpa.

In June, Novatek obtained a Russian patent for its proprietary technology called “Arctic Mix” for large-scale natural gas liquefaction using mixed refrigerants.

According to Novatek, the firm developed this LNG process technology to implement the company’s large-scale projects on gravity-based structures with a production capacity of 6+ mtpa per LNG train.

Most Popular

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

US LNG exports climb to 34 cargoes

US liquefied natural gas (LNG) plants shipped 34 cargoes during the week ending April 16. According to the Energy Information Administration, pipeline deliveries to the LNG terminals increased compared to the prior week.

GTT secured orders for nine LNG carriers in Q1

French LNG containment giant GTT received orders for nine liquefied natural gas carriers in the first quarter, while its revenue rose 31.6 percent compared to the same period last year.

More News Like This

Novatek’s gas sales slightly up in Q1

Russian LNG exporter Novatek reported a slight increase in its natural gas sales, including LNG, in the first quarter of this year.

Russian LNG production down in January-February

Russian liquefied natural gas (LNG) production decreased in the first two months of this year compared to the same period last year, according to the Russian statistics agency Rosstat.

Novatek’s 2024 profit climbs to $5.19 billion

Russian LNG producer Novatek said its net profit rose to about $5.19 billion in 2024.

Novatek’s gas sales drop in 2024

Novatek said in its preliminary report issued on Thursday that the company’s natural gas sales reached 77.76 bcm in...