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Novatek says Arctic LNG-2

remains on track for 2023 launch

TERMINALS THE first train at Novatek’s 20mn tonne-per- for all the three trains of the Arctic LNG-2 pro-
year (tpy) Arctic LNG-2 project is still on track to ject, and we have found technological solutions
start up in December next year, while the second to prevent the delay,” he said at that time. “We
and third trains should come online in 2024 and have got a window of about three years for local-
2026 as initially planned, a project director told isation and for resolving the issue with three or
reporters on December 12. four items of equipment. I am sure we will settle
There have been heightened concerns about it within three years. Perhaps, that will require
whether the timeframe for Arctic LNG-2’s some money, but if everything continues … it
development will be revised in light of West- will pay off three or four times.”
ern sanctions and other fallout from Moscow’s TotalEnergies, one of Novatek’s partners at
invasion of Ukraine, although Novatek and Rus- Arctic LNG-2, has said it will phase down its
sian authorities have insisted that there are no Russian operations in response to Moscow’s
changes to the existing plan. invasion of Ukraine. Various other international
“The goal is to launch … in December 2023,” technology providers, equipment suppliers, con-
the deputy general director for capital con- tractors and financiers have also cut ties with the
struction at Novatek’s Arctic LNG-2 subsidiary, development.
Timofey Sazonov, told reporters. “[The second Mikhelson also said that Novatek aimed to
and third stages] – in 2024 and 2026. We are not take a decision on future projects next year. One
reconsidering [deadlines]. of its prospective developments is Arctic LNG-1,
One of the key buyers of Arctic LNG-2’s gas which like Arctic LNG-2, will be situated on the
will be Japan, which is set to receive 2mn tpy Gydan Peninsula.
from the facility. Arctic LNG-1 received a boost this week,
“This project is developing successfully. We with Novatek reporting on December 12 the
hope that next year Japan will receive additional discovery of a new gas and condensate field to
volumes of Russian LNG, in addition to what add to the project’s resources.
is already supplied from Sakhalin-2,” Russian The discovery was made at the Bukharinsky
Ambassador to Tokyo Mikhail Galuzin said licence area, situated next to the Trekhbugorny
this month. Russia and Japan have areas “for block, and its size is estimated at 52bn cubic
mutually beneficial co-operation,” including the metres of gas and 2mn tonnes of liquids. It has
energy sphere, he said. been named Viktor Girya, after a geologist who
Overall supplies from Russia to Japan will was among the company’s founders.
reach 5-6mn tpy following Arctic LNG-2’s Arctic LNG-1 will be similar in scope to Arc-
launch, according to Galuzin. tic LNG-2, with a capacity of around 20mn tpy.
Novatek CEO Leonid Mikhelson said in “With this discovery, the company will
October that Arctic LNG-2 had reached 70% expand its resource base on the Gydan Penin-
completion. sula with the view to subsequently putting the
“Of course, sanctions have affected us. We field into efficient production under the devel-
have made efforts not only in terms of the indus- opment of its prospective projects,” Novatek said
try and the engineering solutions, but we have in a statement.™
also managed to obtain the main equipment

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