PAO Novatek wholly owned subsidiary, Novatek Gas & Power Asia Pte. Ltd., and Shenergy Group have signed have a 15-year agreement for LNG to be produced from Novatek’s 19.8 million tonne/year (tpy) Arctic LNG 2 project. The agreement stipulates shipment of 3 million tpy of Arctic LNG 2’s production to terminals in China on a delivered ex-ship basis.
Arctic LNG 2 will use three 6.6-million tpy liquefaction trains installed on gravity-based platforms on Gydan Peninsula across the Gulf of Ob from Yamal LNG. The site will also produce 1.6 million tpy of condensate. Novatek expects to complete the project in 2024.
Gas and liquids will be sourced from Utrenneye field. As of yearend 2020, Novatek estimated Utrenneye field’s 2P reserves under petroleum resource management system terms at 1.4 trillion cu m of natural gas and 90 million tonnes of liquids.
Arctic 2 LNG project participants include: Novatek (60%), Total SE (10%), China National Petroleum Corp. (10%), China National Offshore Oil Corp. (10%), and the Japan Arctic LNG consortium of Mitsui & Co. and Japan Oil, Gas and Metals National Corp. (10%).