PRESS: Novatek may swap own liquefaction technology for Linde’s

MOSCOW, Mar 15 (PRIME) -- Russian independent gas producer Novatek may abandon Arctic Cascade, its own natural gas liquefaction technology, and use technology of Germany’s Linde at the Obsky LNG liquefied natural gas project boosting its costs and capacity, Kommersant business daily reported on Monday.

The company may also reorient the entire project to production of ammonia. Both options mean rejection of the company’s previous plans for a scale-up of the Arctic Cascade technology after construction of a fourth, 0.9 million tonne production line of the Yamal LNG plant, Kommersant reported.

Novatek has initiated termination of a 130 million euro contract with HMS Group and Siemens signed in 2020 for Siemens compressors and gas turbines because of the a need to revise production plans of the Obsky LNG project, the business daily said.

The Arctic Cascade encompasses one cooling contour instead of two, the low air temperature of the Arctic is used as a preliminary cooler of natural gas. In theory, this should significantly reduce construction costs, but the first production line to use this technology – the Yamal LNG’s fourth line – has been delayed several times. Sources told Kommersant that these difficulties were the reason for rejection of this technology at Obsky LNG.

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