PAO NOVATEK’s Yamal LNG project. Credit: NOVATEK.

Novatek, Total and the other project shareholders have taken a final investment decision (FID) for the Arctic liquefied natural gas (LNG 2) project in Russia.

The estimated $21.3bn project includes the development of the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region.

It will feature three 6Mtpa liquefaction trains using gravity-based structure (GBS) platforms.

First LNG cargo is anticipated to be exported by 2023 while the second and third trains are planned to be launched by 2024 and 2026, respectively.

Novatek-Murmansk’s LNG construction centre situated near Belokamenka in the Murmansk region will be used for the GBS construction, assembly and installation of LNG modules.

The contract on engineering, procurement and construction of the LNG plant has been awarded to a consortium of TechnipFMC, Saipem and Nipigas (Russia).

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The Russian JV Saren between RHI Russia and Saipem will build the design and construction of gravity-based structures.

Novatek said that more than 90% of long-lead items, including cryogenic heat exchangers, gas turbines and compressors for the liquefaction trains, have been ordered.

Drilling of production wells, construction of roads and the field’s production infrastructure have started.

Novatek holds a 60% stake in the Arctic LNG 2 project while Total has a direct 10% interest. The French energy firm also owns an 11.6% indirect participation in the project via its 19.4% stake in Novatek.

CNPC, CNOOC and the Japan Arctic LNG, which is a consortium of Mitsui & Co and JOGMEC, each hold a 10% interest in the project.

Total chairman and CEO Patrick Pouyanné said: “Arctic LNG 2 will leverage the success of the Yamal LNG project and will deliver competitive LNG to the markets in four years’ time.

“Arctic LNG 2 adds to our growing portfolio of competitive LNG developments based on giant low-cost resources primarily intended for the fast-growing Asian markets.”