Technip Energies completes Arctic LNG 2 exit

Paris-based LNG engineering giant Technip Energies has completed exiting Novatek’s Arctic LNG 2 project in Russia.

The company’s CEO Arnaud Pieton said in October last year that the company signed a deal to exit the Arctic LNG 2 project and said in May this year that company was on track to complete the exit in first half.

Pieton confirmed in the company’s first-half results report on Thursday that Technip Energies has completed the planned exit.

The Arctic LNG 2 project located on the Gydan peninsula includes the construction of three LNG trains with a capacity of 6.6 Mtpa, each, using gravity-based structure platforms.

Novatek recently sent the first gravity-based structure platform from its yard near Murmansk to the site of the Arctic LNG 2 project located on the Gydan peninsula.

The unit, with a total weight of more than 640,000 tons, will travel along the Northern Sea Route and is expected to arrive at the Arctic LNG 2 site next month.

Record backlog, revenue down

Technip Energies said its adjusted backlog increased by 41 percent year-over-year to 18.9 billion euros ($20.9 billion).

Adjusted order intake for the first half amounted to 8.96 billion euros, while adjusted order intake in the second quarter amounted to 8.24 billion euros, which included a major LNG contract for the North Field South project by QatarEnergy.

Technip Energies said its adjusted half-year revenue fell to 2.83 billion euros from 3.27 billion euros in the same period last year.

“The continued ramp-up of activity on Qatar NFE and strong volumes in downstream projects, including ethylene, were more than offset by significantly lower revenue contribution from LNG projects in Russia following the completion of the warranty phase on Yamal LNG in 2022 and the close out activities on Arctic LNG 2,” the firm said.

Pieton said in the report that Technip Energies is currently executing about 35 percent of global LNG capacity under construction.

“The NFS award and continued order momentum for TPS have delivered robust order intake of 9 billion euros year-to-date, leading to a backlog of 19 billion euors, our highest level since the company’s inception,” he said.

“This provides excellent multi-year visibility, equivalent to approximately three times our annual revenues,” Pieton said.

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