Novatek Moves Closer Toward FID on Arctic LNG 2
Novatek, Russia’s largest independent gas producer, has made significant strides toward a final investment decision (FID) on its second major LNG project in the Arctic.
Reuters quoted Novatek CFO Mark Gyetvay as saying that, while it does not have a specific date set for FID, the company aims to make the decision in the third quarter of this year, and that it has contracted 75% of the construction and materials for the project already. Novatek is close to finalizing the ownership structure for the project, having sold 10% to Total in February and additional 10% stakes to CNPC and CNOOC last month.
The company will likely sell another 10% to a third partner before FID, allowing it to maintain a 60% stake in the project. Several media outlets have speculated Saudi Aramco’s interest in investing. The two companies previously signed a cooperation agreement last year to collaborate on natural gas projects, including LNG.
The Arctic LNG 2 project follows Yamal LNG as Novatek’s second foray into the Arctic. Unlike Yamal, which was constructed onshore, Arctic LNG 2 will employ gravity-based structure platforms, engineered offshore platforms that will be towed into place and intentionally sunk in shallow waters. Novatek awarded engineering and construction contracts for the platforms in December to a joint venture between Saipem and Renaissance.
Construction on Arctic LNG 2 is scheduled to begin this summer, and the first train is expected to come online by 2023, though that is subject to change: The Financial Times previously reported that Novatek may push to launch the project earlier in anticipation of potential supply shortages in the 2020s....
Shenzhen Gas Set to Open New LNG Terminal
The launch will make Shenzhen Gas the second Chinese city gas distributor backed by a local government to own an LNG import facility, following Shenergy Group’s Shanghai import terminal. Eni is set to deliver an initial cargo to the facility.
Australia Set To Become King of LNG Exports
Exports capacity has been rising for a decade and is on track to become the world leader within a year.
Kosmos on Track for Mauritania, Senegal Deal
The E&P company said that a reduction in its interests for projects off the coast of the West African nations should still happen by the end of this year. This includes the large Greater Tortue Ahmeyim LNG project, which is set to start up in 2022.
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