Total of France expects a final investment decision on Russia’s Yamal LNG Project to be made next year. The decision was first anticipated by the end of this year.
Head of gas and power at Total, Philippe Sauquet, said at gas and electricity conference in Paris : “We anticipate to be in a position to take the FID next year if the market is there.”, Reuters reports.
The Yamal LNG project will develop the South Tambey field located in the arctic area of the Yamal peninsula. The resources of this condensate and gas field will allow production of more than 15 million tons of LNG per year. With this project, Total will have access to be proved and probable (2P) reserves of approximately 800 million barrels of oil equivalent (boe) within the licence duration and to a plateau production of about 90,000 boe per day. The project has been declared of national interest by the Russian authorities.
Yamal LNG, a 80% subsidiary of NOVATEK, is engaged in the engineering and design work for the construction of an onshore LNG facility located near Sabetta on the Yamal pensinsula.
Novatek, the largest independent gas producer in Russia with whom Total created a strategic alliance earlier in 2011, supplies approximately 13% of the domestic market. Its production reached 25.3 billion cubic metres of gas for the first semester of 2011. Novatek’s portfolio of resources is made of several giant fields that underlie Novatek’s strong potential for growth. Since 2009, Total and Novatek are also jointly developing the Termokarstovoye field.
LNG World News Staff, October 25, 2012; Image: Novatek