Novatek’s 2nd Arctic LNG project almost 30 percent complete

Russia’s Novatek is moving forward with the construction of its second Arctic LNG export project despite the Covid-19 coronavirus pandemic.

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.

According to a Novatek statement, the project is about 29 percent complete, with concrete casting of the first GBS platform about 67 percent complete.

The chief executives of the project participants discussed the construction progress during another virtual meeting last week, according to the Russian company.

This follows their first virtual meeting held in June this year.

Novatek is the project 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.

Works at fabrication yards in full swing, drilling also advances

Novatek says that Arctic LNG 2 module fabrication yards are working at full capacity and expects modules to be completed and shipped according to schedule.

The firm estimates modules fabrication progress for the first GBS at 46 percent.

In addition, the project completed drilling of 17 wells at the Utrenneye field located in the northern part of the Gydan peninsula with three drilling rigs in operation.

The project will mobilize two more drilling rigs before year end.

As per financing, the project partners have already invested more than $7.5 billion in the LNG development that will cost around $21.3 billion in total.

During the meeting, the partners also discussed the current status of the project’s external financing and “confirmed their focus on ensuring its completion in the nearest future,” Novatek said.

The Russian producer expects to launch the first LNG train in 2023, with LNG trains 2 and 3 to follow in 2024 and 2026, respectively.

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