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France’s Total to participate in NOVATEK’s 2nd LNG plant construction in Russia’s Yamal

January 29, 2014, 17:51 UTC+3 VIENNA

Start-up works at the first line of the plant is planned to launch in 2016 with reaching industrial capacity in 2017

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Gas extraction in Russia's Yamal region (archive)

Gas extraction in Russia's Yamal region (archive)

© Fotokhronika TASS/Valery Matytsin

VIENNA, January 29. /ITAR-TASS/. French energy giant Total is set to participate in a project to build a second LNG plant of Russian second largest gas producer NOVATEK in Russia’s Arctic autonomous region Yamal, President of Gas& Power, Total, Philippe Sauquet, told Itar-Tass on Wednesday.

It was reported earlier that NOVATEK would build a second liquefied natural gas (LNG) plant in Yamal on the basis of Salmanovskoye and Geofizicheskoye oil and gas condensate fields, the start of construction is planned in 2018, the Russian government said in the December 19 decree posted on its website. A first line of the LNG plant with a capacity of 5-5.5 million tonnes is planned to build and put into operation in 2018-2022, a second line (also with a capacity of 5-5.5 million tonnes) in 2019-2024, a third line with the same capacity is planned to build and commission in 2020-2025. The place for the second LNG plant on Yamal Peninsula and pipeline routes, including on the Gulf of Ob, northern Russia, is planned to pick up in 2014-2015, the government decree runs. Development of oil and gas condensate fields and construction of pipelines is planned in 2015-2025.

In mid-December 2013, the Yamal LNG board of directors has adopted a final investment solution to develop Yuzhno-Tambeiskoye gas condensate field and build a LNG plant on Yamal Peninsula. Capital investment in the project will total 26.9 billion dollars. Main tenders are held and key contracts are concluded in the project. The contract to design and build an LNG plant is awarded to the joint venture of companies Technip and JGC. Annual aggregate capacity of the first LNG plant is planned at 16.5 million tonnes.

Start-up works at the first line of the plant is planned to launch in 2016 with reaching industrial capacity in 2017. Implementation of the project also envisages creation of transport infrastructure, including an airport and a seaport in settlement Sabetta. Up to 16 ARC-7 ice-class tankers will be used for round-the-year LNG supplies on international markets.

Orders for equipment to be produced for a long time are already placed, first eight wells are drilled. A construction site for the LNG plant is prepared. More than 70% of planned LNG amounts are contracted. OJSC Yamal LNG is implementing the Yamal LNG project. NOVATEK owns an 80% stake and Total — 20% of shares in OJSC Yamal LNG.

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