Novatek plans to start producing liquefied natural gas at the second and third train of its giant Yamal LNG plant in the Russian Arctic ahead of schedule, according to Leonid Mikhelson, chief executive and co-owner of Novatek.
Russia’s largest independent natural gas producer has already started commissioning activities on the first liquefaction unit at its $27 billion Yamal LNG project.
The company expects to launch production at the LNG export plant, Russia’s second, by the end of this year, Mikhelson said during a meeting on Thursday with Russian Prime Minister Dmitry Medvedev.
The three-train Yamal LNG plant, designed to produce about 16.5 million tonnes per year, will liquefy natural gas from the South Tambey field on the Yamal Peninsula in Russia’s West Siberia.
It will be built in three phases which are scheduled for start-up in 2017, 2018, and 2019, respectively.
“Today, more than 31 thousand people work on the site…,” Mikhelson said, adding that that the second train of Yamal LNG will be put into operation three months ahead of schedule, while the third unit could be completed six to nine months earlier then planned.
Mikhelson also noted during the meeting that several European banks will join the financing of Yamal LNG in coming months.
“A number of European banks, countries that are also participants in this project, will join the financing,” he said.
Novatek previously raised about $19 billion in financing for Yamal LNG from China, Russia and some European lenders.
Novatek is the operator and holds a 50.1 percent stake in Yamal LNG. China’s CNPC and Total of France have a 20 percent stake, each, while China’s Silk Road Fund has a 9.9 percent stake in the LNG project.
Arctic LNG-2 project could be 30 pct cheaper than Yamal LNG
Besides its Yamal LNG project, Novatek is also planning to build its second LNG export project to be located on the Gydan peninsula.
Novatek has already started the design works on the Arctic LNG-2 project – expected to have the same output as Yamal.
As part of the LNG project, Novatek recently started building a center for large-scale offshore structures on the Kola Peninsula, Murmansk region, according to Mikhelson.
The center named Kola shipyard, where gravity-based units for the Arctic LNG-2 plant will be built, is expected to be launched in 2019.
Mikhelson, Russia’s richest businessman according to Forbes magazine, said that due to this new technology they will be using, Arctic LNG-2 costs could be reduced by 30 percent as compared to those at Yamal LNG.
Production at the company’s second LNG export project is due to start in 2022-2023.
LNG World News Staff