Novatek’s $21 billion Arctic LNG 2 Project Gets Green Light

Novatek’s $21 billion Arctic LNG 2 Project Gets Green Light
Arctic LNG 2 with the capacity of about 19.8 mln tonnes of LNG per year is Novatek's second LNG plant after Yamal LNG. Photo: Arctic LNG 2 project.

The $21 billion Arctic liquefied natural gas (LNG)-2 project led by Russian private gas giant Novatek got a green light on Thursday.

According to Reuters report, the project participants signed a final investment decision at an economic forum in Vladivostok.

The project is headed by Russia’s biggest private gas producer Novatek and includes French energy producer Total, China’s National Petroleum Corp, CNOOC and the Japan Arctic LNG consortium. The Japanese consortium consists of Mitsui & Co and state-owned JOGMEC -formally known as Japan Oil, Gas and Metals National Corp.

Russian Energy Minister Alexander Novak said the project will cost $21 billion. He further stressed that it is an important project for Russia and that it follows country’s strategy to create capacities for LNG production.

Hiroshige Seko, Japan’s Minister of Economy, Trade and Industry, said the project is one of the largest in the history of Japanese-Russian relations and noted that it will unite Japan and Russia even more. “The Japanese government will provide all necessary assistance for the realization of this project,” he added.

Arctic LNG 2 with the capacity of about 19.8 mln tonnes of LNG per year is Novatek's second LNG plant after Yamal LNG. The launch of the plant based on the Gydan fields is scheduled for 2022-2023.