CEO: Novatek to fully launch Arctic LNG 2 ahead of schedule

MOSCOW, May 17 (PRIME) -- Russian independent gas producer Novatek will fully launch liquefied natural gas (LNG) plant Arctic LNG 2 in 2023–2025, ahead of the previously planned schedule of 2023–2026, CEO Leonid Mikhelson said on Monday at a meeting with President Vladimir Putin.

“The launch of the first line is planned in 2023, and of the second line in 2024. Previously, we scheduled the third line for 2026, but we have two docks, and I think that now the lines will be (launched) in 2023, 2024, and 2025,” Mikhelson said.

Localization of equipment production for the project will exceed 50%, and equipment localization for further projects will reach at least 70%, he said.

Novatek may also build another four gas liquefaction lines with a combined capacity of 26 million tonnes of LNG in 2024–2030, Mikhelson said.

“The plans for 2024–2030 include possible construction of four more liquefaction… As I said, 80,000 jobs, and we will load Zvezda with five tankers per year, which is about 26–30 carriers until 2030. We calculated that this construction alone will add 0.15% to the GDP annually,” he said.

Under a presidential order, the company’s construction should account for loading of 64 million tonnes of LNG and for a total of 90 million tonnes of cargo transportation through the Northern Sea Route, he said. Under a recently approved government ruling, Russia’s combined LNG production should grow to 140 million tonnes by 2035, and Novatek’s new production lines would contribute to that, Mikhelson said.

Novatek expects to switch into year-round navigation and cargo transportation through the Northern Sea Route in 2023–2024, he also added.

The U.S. $27 billion Arctic LNG 2 plant is expected to produce 19.8 million tonnes of LNG per year. Novatek owns 60% in the plant, while France’s Total has 10%, China’s CNOOC and CNODC have 10% each, and Japan Arctic LNG, a consortium of Japan’s Mitsui and JOGMEC, has 10%.

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