The Yamal LNG project will be followed up with the Arctic LNG in the Gydan Peninsula, Novatek says. Illustration photo: Novatek.ru

Novatek presents plans for new Arctic LNG

The gas company invites Japanese investors on board as it starts preparations for a second LNG plant in the Arctic.
February 29, 2016

Novatek, which is with full steam building the Yamal LNG, says it intends to expand LNG production in the region with a second LNG plant in the Gydan Peninsula. During a business trip to Japan this week, Novatek leader Leonid Michelson courted Japanese investors with the project, RIA Novosti reports.

The new project has got the name «Arctic LNG».

A part of the expanded LNG plans in the Arctic is the construction of the Kolskaya Verf («Kola Yard») in Murmansk, a construction yard for LNG modules. The new yard will cost $500 million, the company leader told the Japanese business leaders.

As previously reported, the new Arctic LNG plant in Gydan could be based on a floating solution designed for the shallow waters of the Ob Bay. The Russians are reportedly also in contact with Norwegian engineering company Kværner about the project.

The new plant is likely to be based on the resources of the Salmanovskoye and Geofizicheskoye fields, both located on the eastern bank of the Ob Bay. The total resources of the fields amount to about 380 billion cubic meters, the company informs on its website.

In addition to South Tambey, Salmanovskoye and Geofizicheskoye fields, Novatek controls several other major resources in the area. Among them are the East-Tambey and North-Ob fields, both of them located offshore in the Ob Bay, and believed to hold up to 1,8 trillion cubic meters of gas.

In 2014, Novatek established a subsidiary named the Arctic LNG-1. That entity the same year won the license to the Tryekhbugornoye field, a deposit with resources exceeding 1 trillion cubic meters of natural gas, Novatek informs.

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