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.

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