Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 24 February 2023 Author: Grzegorz Kuczyński
Novatek Plans To Launch Arctic LNG 2 This Year
Russia’s largest private gas firm aims at expanding its flagship project Arctic LNG 2, which is on schedule to begin operating by the end of 2023. War and international sanctions notwithstanding, the Russian natural gas company forges ahead with the development of its grand Arctic projects.
Company owner and CEO Mikhelson this week reiterated that the Arctic LNG 2 is proceeding according to plans and that the first of the project’s three trains will be ready for operations in late 2023 while the second and the third trains will be launched in 2024 and 2026, respectively. “We plan to launch production at the first train at the end of the year,” he told the press during the India Energy Week. Mikhelson added that the first and the second trains have full capacity to launch production. Arctic LNG 2 is the second-largest liquefied natural gas project of Russia’s biggest private company only to its flagship Yamal LNG. The Arctic LNG 2 plant will utilize natural gas from the nearby Utrennoye field on the Gydan peninsula for its Ura Bay terminal, some 40 km from Murmansk. Arctic LNG 2 envisages constructing three LNG liquefaction trains of 6.6 million tons per annum each. The total LNG capacity of the three liquefaction trains will be 19.8 million tons. The reloading terminal on the Barents Sea coast is to be completed in 2023. When fully completed, the Arctic LNG 2 will be Russia’s biggest project of its kind. The Ura Bay is today first of all known for its nuclear submarine base. The fjord has deep waters and does not freeze in wintertime. The reloading terminal will consist of floating facilities that can hold up to 360,000 tons of LNG each and simultaneously serve two LNG tankers. The new logistical scheme will cut costs and provide efficient transportation of liquified natural gas from the Arctic LNG 2 to Europe. When ready, ice-class carriers will shuttle between the terminals and LNG plants in the Yamal and Gydan Peninsulas. Volumes will be then collected by regular carriers as the gulf does not freeze. The terminal will have the capacity to handle about 20 million tons per year. It will be built by the Korean yard Daewoo Shipbuilding & Marine Engineering. The Arctic LNG 2 is due to deliver its liquified natural gas both to customers in Asia, along the Northern Sea Route.
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