Novatek expects to launch third Arctic LNG 2 train in 2025, CEO says

Russian independent producer Novatek aims to launch full operations at its third Arctic LNG 2 train in 2025, according to the company’s chief executive and Russian billionaire Leonid Mikhelson.

Novatek previously expected to launch the first LNG train in 2023, with trains 2 and 3 to follow in 2024 and 2026, respectively.

Mikhelson told Russian President Vladimir Putin during a meeting on Monday that Novatek still plans to launch the first train in 2023, followed by the second in 2024.

“Since we have two docks, it was earlier planned to launch the third line in 2026 but now I think it will be launched in 2025,” he said.

Mikhelson and Putin discussed several Novatek’s projects, construction of filling stations, but also the progress on the Arctic LNG 2 development.

The 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 is working on the platforms at the Murmansk LNG construction yard where the firm mobilized approximately 4,100 construction workers.

The firm previously said it expects the first modules for the first GBS to arrive from China in Murmansk around September 2021.

Several deals for the $21.3 billion project

Novatek revealed several deals regarding the giant LNG project last month including the signing of a loan agreement with a syndicate of Russian banks for a total amount of 3.11 billion euros ($3.77 billion).

Novatek has previously said the project’s partners were working to complete about $11 billion in external financing for the project that will cost around $21.3 billion in total.

Moreover, this signing followed two announcements related to the Arctic LNG 2 project earlier the same month.

Novatek announced a deal with Total for the LNG transshipment complexes currently under construction in the Kamchatka and Murmansk regions.

In addition, Novatek said it has signed offtake deals with its partners in the Arctic LNG 2 project for all of the volumes from the development.

The Russian producer is the LNG project’s operator with a 60 percent stake, France’s Total 10 owns percent while CNPC and CNOOC of China have 10 percent, each.

Japan Arctic LNG, a consortium of Mitsui & Co and Jogmec, owns a 10 percent stake in the project as well.

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