Russia's Novatek to Build Four Islands

Kola Bay
Kola Bay, Murmansk

By MarEx 2017-06-20 03:00:37

Russian gas company Novatek has received government permission to build four artificial islands in Kola Bay, off the coast of Murmansk.

The islands will be used to further work at Novatek's Kola Yard on the construction of LNG modules for the Arctic LNG-2 plant. This will be the company’s second LNG plant in the Arctic and is expected to involve three gravity-based structures with LNG plants on them floating in the shallow waters of Ob Bay. 

The government directive granting permission to build the islands says it will create around 10,000 jobs, increase tax revenue into the budget at all levels, bring new investment into the region and develop new high-tech production facilities.

Earlier this year, Novatek signed a framework agreement on strategic cooperation with Technip, Linde and Research and Design Institute for Gas Processing (NIPIGas) on the Arctic LNG-2 project. 

Output at the Arctic LNG 2 plant is expected to match or exceed that of the Yamal LNG plant – 16.5 million tons of LNG and 1.2 million tons of gas condensate per year. The first stage of its construction is planned for completion by 2023.