Italian oil and gas industry contractor Saipem and its Turkish partner Renaissance have been awarded a new €2.2bn (US$2.5bn) onshore engineering and construction (E&C) contract for the construction of the Arctic LNG 2 export project on the Gydan Peninsula (Russia). Saipem and Renaissance will work under the framework of a 50/50 joint venture (JV).
Arctic LNG 2 encompasses the construction of three liquefaction trains of 6.6 Mt/year capacity each with a total capacity of approximately 19.8 Mt/year (26.7 bcm/year). The final investment decision could be made as early as mid-2019, with the first train expected to start up by the end of 2023. Arctic LNG 2 will unlock more than 7 Gboe of hydrocarbon resources in the onshore Utrenneye gas and condensate field.
The project is operated by Novatek (60%), which is considering reducing its share in the project to 40%, and Ekropromstroy (40%). In May 2018, Total, which already owns a 19% stake in Novatek and takes part to its Yamal LNG plant in Russia, committed to acquire a 10% working interest in the Arctic LNG-2 liquefaction project. The project has also attracted interest from international investors, such as CNPC, Kogas and Saudi Aramco.
Interested in LNG Databases?
World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.