Russian President Vladimir Putin has given assent for the departure of the Arctic LNG 2 project’s first production line, reported Reuters, citing the Kremlin.
As per the report, the line will be delivered through the Northern Sea Route from the Murmansk region to its future location of production on the Gydan peninsula.
Under the $21.3bn (Rbs1.9trn) Arctic LNG 2 project, three liquefied natural gas (LNG) liquefaction trains will be constructed, each with a capacity of 6.6 million tonnes per annum.
The Murmansk area is home to the first factory in the world for mass-producing natural gas liquefaction trains on gravity-based structures (GBS), which will be utilised in Arctic LNG 2.
“LNG projects are very important. They allow us to conquer share on global LNG market, to develop related sectors… There are reasons to believe that Arctic LNG 2 will be implemented on time,” Putin was quoted as saying.
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With a 60% stake, Novatek is leading the project, which aims to aid Russia in achieving its objective of increasing its share of the world LNG market from 8% to 20% by 2035.
The other partners in the Arctic LNG 2 project are China’s National Petroleum Corporation (CNPC), China National Offshore Oil Corporation, TotalEnergies and a consortium made up of Mitsui and JOGMEC of Japan, each owning 10%.
Separately, Novatek head Leonid Mikhelson revealed plans to supply more than two million tonnes of LNG from the Arctic LNG 2 plant to Japan.
“In the Arctic LNG 2 project, partners sell LNG depending on the ownership share,” Mikhelson was quoted by the news agency as saying. “The Japanese side has 10% – this is two million tons. They will be on the Japanese market for sure. But there are already contracts, and additional contracts from Novatek’s share for Japan are being considered.”