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Final investment decision made on Arctic LNG 2 project

Christian Fernsby |
During the Eastern Economic Forum in Vladivostok,PAO NOVATEK announced that the participants of OOO Arctic LNG 2 approved a final investment decision (“FID”) for the Arctic LNG 2 project.

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Topics: ARCTIC    LNG   

This is consisting of the development of the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region (the “Project”).

The participation in the Project also provides for the long-term LNG offtake by all the participants in proportion to their respective ownership interests.

The LNG plant will consist of three (3) liquefaction trains with overall production capacity of 19.8 million tons per annum.

The launch of LNG train #1 is scheduled for 2023, with LNG trains #2 and #3 to be launched in 2024 and 2026, respectively.

Capital expenditures to launch the project at full capacity is estimated at US$21.3 billion equivalent.

Arctic LNG 2 employs an innovative concept using gravity-based structures (GBS) and provides for localizing the majority of equipment manufacturing and materials fabrication in Russia.

The GBS construction, assembly and installation of LNG modules will be performed at NOVATEK-Murmansk’s LNG Construction Center located near Belokamenka in the Murmansk Region.


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