Novatek Moves on Arctic LNG 2 Contracts

Novatek has announced a string of deals for the construction of the Arctic LNG 2 project.

The company has signed an agreement on the design and construction of gravity-based structures with the Russian company Saren, a joint venture of Renaissance Heavy Industries Russia and Saipem. The agreement provides for the design and construction of three platforms for the project’s natural gas liquefaction trains. The platforms will be built at the Novatek-Murmansk plant.

Novatek has also selected Nuovo Pignone (Italy) to provide gas turbine compressors and gas turbine generators for the three liquefaction trains. The company previously supplied turbines for the Yamal LNG project. For Arctic LNG 2, the company will provide machinery to produce 6.6 million tons of LNG per annum. 

Novatek has also signed an cooperation agreement with SACE (CDP Group) in relation to its current and future LNG projects. The parties agreed to develop long-term cooperation on the Arctic LNG 2 project and potential new LNG projects involving Italian suppliers and engineering companies. Novatek has previously cooperated with SACE in the financing of the Yamal LNG project. 

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure platforms. The project is based on the hydrocarbon resources of the Utrenneye field. As of 1 December 2018, the Utrenneye field’s reserves under the Russian reserves classification totaled 1,978 billion cubic meters of natural gas and 105 million tons of liquids.