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Arctic LNG-2 to reach full capacity

one year early

RUSSIA RUSSIA’S Novatek expects its flagship Arctic Novatek likely wants to bring Arctic LNG-2
LNG-2 project to reach full capacity in 2025, up to full capacity sooner because of the expec-
Novatek expects to one year earlier than anticipated, CEO Leonid tation that the global LNG market will become
supply 64mn tpy of Mikhelson announced in a meeting with Rus- bullish by the mid-2020s, thanks to demand
LNG by 2030. sian President Vladimir Putin on May 17. growth in Asia and project delays caused by the
The project, which involves the construction coronavirus (COVID-19) pandemic. Norwe-
of three liquefaction trains capable of produc- gian consultancy Rystad Energy estimates that
ing nearly 20mn tonnes per year (tpy) of LNG 9mn tpy of LNG supply previously predicted to
combined, was reported as 39% complete at the join the market between 2026 and 2030 will no
end of March. Its first train was said to be 53% longer do so, potentially creating a deficit.
complete. Its first and second trains will come Russia currently has two large-scale liq-
on stream in 2023 and 2024 respectively as orig- uefaction plants – the Gazprom-operated
inally planned, Mikhelson told Putin, but the 11mn tpy Sakhalin LNG plant and the 17mn
third train is now anticipated to be up and run- tpy Yamal LNG facility developed by Novatek.
ning in 2025. The country’s LNG strategy lists a large num-
Russia approved a strategy for accelerating ber of projects in the pipeline, although notable
development of its LNG sector in March, target- ones expected on stream in the next few years
ing output of up to 140mn tpy by 2035. Novatek also include Gazprom’s 11mn tpy plant on the
will contribute 64mn tpy of this supply by 2030, Baltic Sea, Novatek 5-6mn tpy Obsk LNG on
Mikhelson, who is also a major shareholder of the Gydan Peninsula and Rosneft’s 6.2mn tpy
the gas producer, told the Russian president. project in the Far East.™

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