CEO says Novatek to launch 3rd stage of Yamal LNG in late 2018

CHELYABINSK, Aug 28 (PRIME) -- Russia’s independent gas producer Novatek plans to launch the third stage of the Yamal Liquefied Natural Gas (LNG) facility at the end of 2018, around a year ahead of the schedule, Novatek CEO and core owner Leonid Mikhelson said on Tuesday.

“Last December we commissioned the first stage of the Yamal LNG plant. The second stage was launched this month. The facilities doubled Russia’s LNG output. We plan to start the third stage at the end of this year, almost a year earlier than the scheduled date,” he said.

Mikhelson also said that after launching all the four stages the plant will produce over 17 million tonnes of LNG and over 2 million tonnes of gas condensate annually.

The Yamal LNG is based on the Yuzhno-Tambeiskoye field on the northern Yamal Peninsula. Novatek holds 50.1% in the project, France’s Total has 20%, China’s CNPC owns 20% and China’s Silk Road Fund holds 9.9%.

The CEO also said that Novatek plans to initiate most tenders on the equipment for its Arctic LNG-2 project to choose almost all machine suppliers in 2019.

The Arctic LNG-2 U.S. $27 billion plant will be launched in 2022–2025 and the fields of the Gydan Peninsula in the north of West Siberia will become its resource base. The facility is to produce 19.8 million tonnes of LNG per year.

Mikhelson said that his company plans to raise competitiveness of its LNG facilities thanks to a maximal use of locally made equipment and components including stainless steel pipes, and deliveries via transshipment terminals in Kamchatka and the Murmansk Region.

“According to our estimates, the LNG project will involve over 800 companies around Russia. The project will help attract significant investment in Russia’s economy and create around 80,000 jobs,” he said.

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