Arctic LNG 2

Arctic LNG 2 is a project of Novatek for the extraction of natural gas and the production of liquefied natural gas on the Gydan Peninsula (on the other side of the Ob Bay from Yamal).

The resource base of the Arctic LNG 2 project is the Utrenneye field, located on the Gydan Peninsula in the Yamal-Nenets Autonomous Okrug, approximately 70 km from the Yamal LNG project across the Ob Bay.

The plant will include three process trains with a total capacity of 19.8 million tons of LNG per year. The trains will be located on gravity-based structures (GBS) located in the waters of the Ob Bay.

LNG will be transported from the Utrenneye terminal by ice-class LNG tankers.

The launch of the first stage of Arctic LNG 2 is scheduled for 2023. The second stage of the project should be operational in 2024, the third - in 2026.

Capital investments to launch the project at full capacity are estimated at $21.3 billion.

The shares in Arctic LNG 2 are distributed as follows:

• Novatek (Russia) – 60%;

• Total (France) – 10%;

• China Petroleum Corporation CNPC (China) – 10%;

• Oil and Gas Company CNOOC (China) – 10%;

• Consortium of Mitsui & Co and JOGMEC – Japan Arctic LNG (Japan) – 10%.

History of the project implementation

The consortium of TechnipFMC (France), Saipem (Italy) and NIPIGAZ (Russia) was responsible for the design and construction of the LNG plant.

On May 20, 2019, NOVATEK's joint venture Arctic LNG 2 and TechnipFMC signed a contract for the design, supply of equipment, materials and components, construction and commissioning of a natural gas preparation and liquefaction complex.

The project's process flow diagram involves the construction of three gravity-based platforms on which liquefaction lines will be installed (6.6 million tons on each platform).

The platforms will be built at NOVATEK's shipyard in Murmansk and then towed to the installation site in the Gulf of Ob near the field. Then the platforms, floating during transportation, will be installed directly on the seabed.

In December 2018, Arctic LNG signed a contract for the construction of the gravity bases themselves worth €2.2 billion.

Saren, a joint venture between Renaissance Heavy Industries Russia (controlled by the Turkish holding Renaissance) and Saipem S.p.A., is responsible for the design and manufacture of the GBS (each platform measures 300x152x70 m and weighs 440,000 tons).

The main supplier of turbomachinery equipment (compressor units and gas turbine electric generators) was to be the Italian company Nuovo Pignone (controlled by GE). The Italians will supply gas turbines.

Siemens was to supply three feed gas compressor units and six boil-off gas compressor units.

Arctic LNG 2 will be serviced by gas carriers similar in characteristics to the Christophe de Margerie-class vessels for the Yamal LNG project.

Since the start of construction of the Arctic LNG 2 plant, NOVATEK has changed the composition of the critical equipment for the project's power supply several times: in 2022, key elements, namely gas turbines and compressors, became unavailable due to sanctions.

In 2023, not only equipment was subject to G7 sanctions. In November 2023, the United States included the Arctic LNG 2 project in the SDN list.

Today, the main problems caused by the introduced bans on the supply of equipment have been largely resolved, and for now NOVATEK plans to launch all three lines on time: the first - in late 2023 - early 2024, the second - in 2024, and the third - in 2026.

Contact us to find out about current job openings on the project!

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