Novatek lets EPC contract for Arctic LNG 2 project

Novatek and partners let an engineering, procurement, and construction contract to TechnipFMC for the Arctic LNG 2 project in Russia’s Gydan Peninsula in West Siberia.

Novatek and partners let an engineering, procurement, and construction contract to TechnipFMC for the Arctic LNG 2 project in Russia’s Gydan Peninsula in West Siberia.

Novatek plans three liquefaction trains at the 19.8 million-tonne/year Arctic LNG 2 project with capacities of 6.6 million tpy each on gravity-based structure platforms. Gas will come from Utrenneye field.

TechnipFMC will execute the project under a lump sum and reimbursable basis. It will cover the EPC of the three LNG trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards.

Technip values the EPC contract at over $1 billion. The consolidated contract value to TechnipFMC for Arctic LNG 2 is $7.6 billion.

In June, CNOOC Ltd. and its subsidiary CEPR Ltd. signed an agreement with Novatek and Ekropromstroy LLC, a wholly owned subsidiary of JSC Novatek, to acquire a 10% equity interest in Arctic LNG 2 LLC (OGJ Online, June 7, 2019).

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