China continues to invest in Arctic natural resources as two Chinese national oil companies secure a 20 percent stake in Novatek’s massive Arctic LNG 2 project. "The issue of the development of the Arctic LNG project is being discussed. The value of the contract is expected to be in range between $50m and $250m. Novatek holds a 60 percent stake in the project, while its partners Total, Chinese CNPC and CNOOC and a Japanese consortium each hold 10 percent.Novatek had also solicited investments from Saudi Arabia and India, among others.Arctic LNG 2 is scheduled to open at the end of 2022 with the second and third production lines to follow in 2024 and 2026. Spotted a typo? “Expanding our supply geography and diversifying our long-term contract customer base is consistent with the company’s strategy to ramp up LNG production in the Russian Arctic,” Novatek’s First Deputy Chairman of the Management Board Lev Feodosyev said in a statement. But opting out of some of these cookies may have an effect on your browsing experience. This website uses cookies to improve your experience. While Novatek holds a 51 percent stake in Yamal LNG, it reportedly aims to keep a 60 percent share of Arctic LNG 2. In comparison, Qatar, the world’s largest producer, exported around 80 million tons last year. Advertising inquiries – [email protected], Commentary or Opinion – [email protected], Publisher – Alice Rogoff – [email protected], Arctic Today Editor – Krestia DeGeorge – [email protected]. Offshore Wind With over 50 years of experience in the construction, manufacturing, supply and assembly of steel structures, Smulders was the logical choice for offshore wind structures back in the pioneering days of wind energy almost 20 years ago. Have something more to add to the story? The first, Yamal LNG, has an annual production capacity of 16.5 million metric tons. Another key building block in Novatek’s strategy to export Arctic LNG to markets in Europe and Asia will be two transshipment hubs outside ice-covered waters near Murmansk, Russia and on the Kamchatka peninsula in the Far East. ... China looks to further its Arctic role by constructing Arc7 LNG... Malte Humpert, High North News-January 22, 2020. The Arctic liquefied natural gas (LNG) 2 project is being developed in the Gydan Peninsula in the northern part of Siberia, Russia. CTRL + SPACE for auto-complete. Wo aro targeting various profiles in many disciplines (Civil, Electrical, Mechanical, l&C, HVAC and layout). The development will consist of three liquefied natural gas (LNG) trains, each with a capacity of 6.6 Mtpa, which will be installed on three gravity-based structure platforms. Arctic LNG 2 Project. Fabrication for the modules is scheduled to start at the end of 2019 and be completed in mid-2022. The Utrenneye field is the resource base for Arctic LNG 2. These cookies do not store any personal information. The field is located in the Gydan Peninsula in YNAO approximately 70 km across the Ob Bay from Yamal LNG. earlier this spring on the Gydan Peninsula, 10 percent stake in the two proposed terminals, signed a 20-year contract for LNG transshipment, Greenpeace activists target Norwegian Arctic drilling rig, Arctic Council to hold ministerial meeting in Rovaniemi, Finland next week. The two terminals will serve as a transfer point where LNG will be reloaded from ice-capable carriers to traditional ones for delivery to Europe and Asia. To bolster its position exporting LNG on long-term contracts Novatek signed two supply deals with Repsol and Vitol SA for up to one million tons of LNG each per year over a 15-year period. The Wison Offshore & Marine started its procedures for the Novatek Arctic LNG 2 project. China continues to invest in Arctic natural resources as two Chinese national oil companies secure a 20 percent stake in Russia’s massive Arctic LNG 2 project. Necessary cookies are absolutely essential for the website to function properly. For the records, in the past the Technip France S.A. … The company said fabrication of the liquefied natural gas (LNG) project in Russia commenced in Zhoushan Yard on Nov. 29. Why Arctic LNG-2? China continues to invest in Arctic natural resources as two Chinese national oil companies secure a 20 percent stake in Novatek’s massive Arctic LNG 2 project. LONDON & PARIS & HOUSTON--(BUSINESS WIRE)-- Regulatory News: TechnipFMC (NYSE:FTI) (PARIS:FTI) (ISIN:GB00BDSFG982) has been awarded a major (1) Engineering, Procurement and Construction (EPC) contract by Novatek and its partners for the Arctic LNG 2 project located in the … China’s Wison Offshore & Marine has started fabrication work for Novatek’s Arctic LNG 2 project ahead of schedule, potentially resulting in cost benefits for developers, Kallanish Energy reports. Then in April Novatek cashed in by selling 20% in Arctic LNG-2 to Chinese CNOOC and CNODC, with … Work locations: Russia. Combined the Yamal LNG and Arctic LNG 2 will have a capacity of 37.5 million tons of LNG per year, propelling Russia into the top five LNG producers in the world. Thus far, the majority of Novatek’s Arctic LNG has been delivered to ports in Western Europe, namely Belgium, the Netherlands, France and the United Kingdom. It concerns the participation of Chinese partners in a project similar to Yamal LNG," Novak said. When completed by 2023, the Arctic LNG 2 … If a partnership does not come to fruition for this project, Saudi Aramco may yet become a partner on future projects as Novatek will begin the search for investors for its Arctic LNG 3 project before the end of 2019. “The agreement is an important milestone in our Arctic LNG 2 project implementation as well as a continuation of our successful cooperation with CNPC,” noted Leonid Mikhelson, Novatek’s Chairman of the Management Board. McDermott said that the work will take place at its QMW joint venture in China. Novatek and its partners recently made the final investment decision (FID) on the $21.3bn Arctic LNG 2 project and first LNG deliveries are expected in … Later that month, TechnipFMC was awarded a contract for work on the Arctic LNG 2. Project Phase: Desi1ln and Consort ction. Wo aro also recruiting for all levels Engineers, Technicians, Supewisors, Superintendent, and Managers for Oil and Gas Industry. It feeds China’s need for LNG. READ MORE: Shinzo Abe: Japan Considering Financing Russia's Yamal LNG Project At the beginning of August, Saipem reached an agreement with Technip France SA and NIPIgaspererabotka to participate in the Joint Venture for the realization of the Arctic LNG 2 project with a share worth approximately €2.2 billion. - Novatek signs MoU with the China Development Bank to cooperate in implementing the Arctic LNG 2 project home > Natural Gas , Lng/Lpg 01.11.2017 13:27 Hüseyin Erdoğan The project will be the Russian company’s second liquified natural gas production facility in the Arctic following on the heels of the Yamal LNG plant. Two Chinese national petroleum companies each secured a 10 percent share in the project, the Russian company's second major one in the Arctic. The Arctic LNG 2 project aims to develop more than 7 billion barrels of oil equivalent (boe) of resources. China is the world’s second-largest LNG market and needs to secure supplies fast. Besides delivering LNG to long-term project investors in China, Novatek continues to push into the European market. It is mandatory to procure user consent prior to running these cookies on your website. This category only includes cookies that ensures basic functionalities and security features of the website. Arctic LNG 2 expands on the success of the adjacent Yamal LNG project at the port of Sabetta. The designation refers to McDermott’s share of the award via its joint venture. The other shareholders are Total (10%), China National Petroleum Corporation (10%), China National Offshore Oil Corporation (10%) and Mitsui/Jogmec (10%). It is being jointly developed by Novatek (60%) and Ekropromstroy (40%) with an estimated investment of $25.5bn. Currently, the company employs ship-to-ship transfers of LNG in Norwegian waters near Honningsvåg to reload up to 150 shiploads of LNG. McDermott’s joint venture Qingdao McDermott Wuchuan Offshore Engineering (QMW) in Qingdao, China, has been awarded a large contract to provide three complex modules for Novatek’s Arctic LNG 2 Project in Russia. QMW will undertake fabrication engineering, partial procurement, construction, and pre-commissioning scope. Project in progress. However, Novatek recently made it clear that it does not seek to repeat this type of operation in the future, in part due to challenging weather conditions. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. The project will be the Russian company’s second liquified natural gas production facility in the Arctic following on the heels of the Yamal LNG plant. “Arctic LNG 2 will be a gamechanger in the global gas market.”. It is located on the Gydan Peninsula, 70 kilometres across the Ob Bay from Yamal LNG. This website uses cookies to improve your experience while you navigate through the website. Between Total’s stake and the newly announced Chinese participation, this leaves up to 10 percent up for grabs for Aramco. The project is expected to have a production capacity of 19.8 million tons (Mt) of LNG a year. We discuss the challenges with Arnaud Le Foll, Managing Director of Total E&P Russie. French company Total earlier this month bought a 10 percent stake in the two proposed terminals, estimated to cost around $2.5 billion. TechnipFMC Awarded a Major Contract for the Arctic LNG 2 Project in West Siberia . Taking into account its 19.4 percent stake in Novatek, its overall share is 21.6 percent. France's TOTAL owns 10%, China's CNPC and CNOOC own 10% each, and the Japanese consortium of Mitsui and JOGMEC owns a 10% stake. The project employs an innovative construction concept using gravity-based structures (GBS). You also have the option to opt-out of these cookies. At the end of 2018 the company announced that it will deliver its product to the port of Zeebrugge in Belgium from where it can be distributed to Germany’s Ruhr region and across Europe. The investment in the Russian project is a strategic move for China for a variety of reasons. Today, Smulders is an established market leader that offers a full range of services from engineering […], September 17, 2019, Novatek and the Belgian company Fluxys, operator of natural gas transmission and storage infrastructure, signed a 20-year contract for LNG transshipment services at Zeebrugge for up to 8 million tons per year. 1. The Arctic LNG 2 project is 60% owned by Novatek. The scope includes the fabrication of three pre-assembled unit complex process modules, McDermott said on Tuesday. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. These cookies will be stored in your browser only with your consent. ↑Novatek Looks to Build Second Arctic LNG Plant," The Maritime Executive, March 29, 2017. Arctic LNG 2 is the second large-scale LNG project to be situated in Russia north of the Arctic Circle. Novatek sells stake in Arctic LNG 2 project to China CNOOC and a unit of Petrochina will take 10% stakes each in a project that is set to reach final investment decision stage by the second half of the year. Arctic LNG 2 project is a major liquefied natural gas development led by Novatek on the Gydan Peninsula, Russia. We also use third-party cookies that help us analyze and understand how you use this website. Companies sign deals to construct carriers for Arctic LNG 2. Maybe a nice photo? Why Arctic LNG-2? ↑ "Yamal-Nenets government approves Salmanovskoye field development project for Arctic LNG-2," The Arctic, June 23, 2017. Write CSS OR LESS and hit save. Construction began earlier this spring on the Gydan Peninsula, just across the Ob delta from the Yamal LNG project on the Yamal peninsula. With the new supply contracts, the company aims to diversify its offerings, especially to regions that are not connected to the network of Russian natural gas pipelines, such as the Iberian peninsula. French energy major Total, which holds a 20 percent stake in Yamal LNG, already bought a 10 percent share in Arctic LNG 2 last year. The investment in the Russian project is a strategic move for China for a variety of reasons: It feeds China’s need for LNG: China is the world’s second-largest LNG market and needs to secure supplies fast. Contact our editorial team via email. China acquires 20 percent stake in Novatek’s Arctic LNG 2 Project. ↑ "2017 World LNG Report" International Gas Union, Accessed June 20, 2017. Arctic LNG 2: A Vast LNG Project in Russia’s Far North Following the success of Yamal LNG, the Group has announced the launch of Arctic LNG 2, a vast LNG project in Russia’s Far North. Press release | July 23 2019 . OOO Arctic LNG 2 is the operator and owner of all the assets. Novatek has also been in discussion with Saudi Arabia’s national oil company Saudi Aramco and reports say it is nearing an agreement. Malte Humpert, High North News-June 30, 2020. McDermott’s Senior Vice President Asia Pacific, Ian Prescott, said: “This award recognizes QMW’s experience and excellent performance in the Arctic on an earlier Yamal LNG project.”, He added: “Fabrication will be completed in QMW’s mega module workshop which provides increased certainty for safety, schedule and successful project delivery.”. Upcoming decision on Ob LNG. As the company announced, the China National Petroleum Corporation (CNPC) and the China National Offshore Oil Corporation (CNOOC) each secured a 10 percent share, mirroring closely the 20 percent stake CNPC holds in Yamal LNG. Zeebrugge received the first shipment from Yamal LNG in May 2018. Novatek’s second plant for liquefying gas in the Arctic region has drawn the interest of several foreign companies, including those from China, Japan, and France. Despite COVID-19, Novatek’s Arctic LNG 2 project remains on schedule. CLICK HERE FOR SPECIAL OFFER One month subscription for only$1. The project participants now include Novatek (60%), Total (10%), CNPC (10%), CNOOC (10%), and the Japan Arctic LNG (10%). Front-end engineering and design for the project was completed last year, confirming preliminary cost estimates of between $20 billion and $21 billion. by, McDermott completes raising $560M in new funds, McDermott bags NFS FEED job from Qatargas, Online session ‘Careers in Offshore Wind’- Powered by Navingo Career, McDermott’s China JV to build modules for Arctic LNG 2 project, Novatek last July closed the sale of participation interests in its Arctic LNG 2 Project, TechnipFMC was awarded a contract for work on the Arctic LNG 2, to participate in the Joint Venture for the realization of the Arctic LNG 2. please contact us via our advertising form where you can also see our media kit. We'll assume you're ok with this, but you can opt-out if you wish. Send your rosume to Specifically, the company announced that the project's manufacturing started on 29 November, at the Zhoushan yard in China. Building on the success of that first project, Novatek is thus far sticking with the same project partners. This follows on from the divestment of a 10% stake to Total in March. McDermott’s joint venture Qingdao McDermott Wuchuan Offshore Engineering (QMW) in Qingdao, China, has been awarded a large contract to provide three complex modules for Novatek’s Arctic LNG 2 Project in Russia. Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit. Novatek operates the Arctic LNG 2 project with a 60% stake. The company intends to keep a 60% stake in the project. Company profile page for Arctic LNG 2 OOO including stock price, company news, press releases, executives, board members, and contact information It is a new project for the construction of a gas liquefaction plant. Novatek last July closed the sale of participation interests in its Arctic LNG 2 Project to two Chinese companies and a consortium of two Japanese companies thereby forming the structure of the project’s participants. Total, the world's second largest private LNG player, owns 10 percent of interest in the project. Engineering services firm McDermott International has won a contract to help deliver a major liquefied natural gas (LNG) project in Russia. The scope of work covers the EPC of the three LNG trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards. To lower the cost of the natural gas, the LNG trains will be built on top of three concrete gravity-based structures which will be held in position by their weight. China’s National Offshore Oil Corp (CNOOC) and National Oil and Gas Development Co. (CNODC) signed up last week to acquire 10% each in the project. Arctic LNG 2 project is a major liquefied natural gas development led by Novatek on the Gydan Peninsula, Russia. The Arctic LNG 2 project includes the construction of three LNG trains with a capacity of 6.6 million tonnes of LNG per annum (mtpa) each and another 1.6 mtpa of stable gas condensate. McDermott defines a large contract as between $50 million and $250 million. From Malte Humpert Russia’s largest private natural gas company, Novatek, secured vital funding for its Arctic LNG 2 plant. Sberbank’s commitment to the Yamal project, which already supplies foreign buyers with Russian LNG, amounted to €2.7 billion ($3.2 billion). Largest private natural gas ( LNG ) project in Russia commenced in Zhoushan Yard in China website uses to! Km across the Ob Bay from Yamal LNG project to be in range between $ and... 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