Italian oil and gas industry contractor Saipem has agreed to participate in a joint venture (JV) for the realisation of the Arctic LNG 2 project, for a share worth approximately $2.4bn (€2.2bn).

The JV includes Technip France, a subsidiary of oil and gas company TechnipFMC, and Russian gas services company Nipigaspererabotka.

The project was awarded by Arctic LNG 2, a company formed by Russian natural gas provider Novatek and wholly-owned subsidiary EkropromStroy. Novatek is the operator of the project with a 60% stake, with Ekropromstroy owning the remaining 40% stake.

The development on the Arctic LNG 2 project comprises the design, procurement, fabrication, construction, commissioning and start-up of three LNG trains, with a capacity of approximately 6.6 million tonnes per annum (MTPA) of LNG and at least 1.6MTPA of stable gas condensate.

Saipem is currently designing and building the concrete gravity-based structures the trains will be installed on in the framework of a contract announced in December 2018.

The trains will be realised in the Russian Tazovsky district, located in the western part of the Gydan peninsula.

Saipem CEO Stefano Cao said: “Involvement in the works for the construction of the three trains for the Arctic LNG2 project, following the awards of the contracts for the Gravity Based Structures with the same client and the LNG Mozambique Project with Anadarko, reaffirms Saipem’s strategic choice to consolidate its leadership across the entire natural gas value chain.”