The liquefied natural gas, Artic 2, is being developed in the Gydan Peninsula (Siberia). This project is developed by the company Novatek (60%) in joint venture with the Ekropromstroy (40%). The total investment is estimated at $25.5bn.
Project details
The Artic LNG 2 will include the installation of three Liquefied Natural Gas (LNG) plants that will be installed on a concreate gravity-based structures (GBS). It will be 30m high for 330m length and 152m width. It will also include LNG storage facilities of 687,000m³’s capacity.
The GBS will host three liquefaction trains that will have an annual capacity of 6.6 million tonnes.
The annual production capacity of Arctic 2 is 19.8 million tonnes, which represents 535 000 barrels a day.
Contractors taking part to the project
For the provision of onshore engineering and the construction contract, Saipem, in joint venture with Renaissance, have been awarded. This contract worth $2.5bn. Olav Olsen have been subcontracted by Saipem to provide the front-end engineering and design for the GBS.
In February 2019, Novatek has reach an agreement with Siemens for the supply of compressor equipment to be installed on the liquefaction trains.
Nuovo Pignone will supply turbo machinery equipment comprising gas compressor turbines and gas turbine generators for the project.
TOTAL taking part to the LNG project, Artic 2
In March 2019, TOTAL announced that they reached an agreement with Novatek for a 10% direct participation in the liquefied natural gas’s (LNG) project, Arctic 2.
With this investment, TOTAL wants to increase its portfolio in LNG thanks to competitive projects like Arctic 2.
21.6% of economic interest in the project
As TOTAL owns 19.4% of Novatek’s capital and that Novatek wants to keep its 60% participation on the project, the economic interest of the Group will reach 21.6%.
The direct participation of Total could reach 15% in case Novatek decide to decrease it 60% participation.
The two companies have agreed that TOTAL can reach from 10 to 15% direct participation in every Novatek’s LNG projects located on the Yamal and Gydan peninsulas.
