Daily Newsletter

24 January 2024

Daily Newsletter

24 January 2024

Russia receives last module necessary for Train 2 of Arctic LNG 2

The modules will now undergo final assembly with a view to moving the train in the summer.

Alfie Shaw January 23 2024

The last module required to construct the second production line of Russia’s Arctic liquefied natural gas (LNG) 2 project was delivered from China last week. In February, Novatek, the Russian gas producer running the project, will integrate the final three modules ahead of towing the LNG train to the Gydan peninsula this summer.

US sanctions have not stopped construction of the train, although the quantity of LNG that Novatek will be able to sell remains unknown.

The prefabricated module departed from the Penglai Jutal Offshore Engineering yard in Penglai, a district in the Chinese province of Shandong, aboard the Hunter Star heavy load carrier on 15 January and reached Murmansk in the Russian Arctic last week, according to industry sources that spoke to High North News. Earlier in January, two modules were shipped from the same yard.

An LNG train consists of various components to process, purify and convert natural gas into the cooler LNG.

Despite months-long building stoppages following western sanctions in response to the war in Ukraine in 2022, Novatek has managed to secure all modules, including replacing Western turbines with Chinese imports. The modules will undergo final assembly at the Belokamenka yard outside Murmansk.

The second train could be ready to sail to the Utrenney terminal in Russia in August, according to Ben Seligman, a project specialist for Arctic oil and gas development.

Although Novatek is nearing the completion of Train 2, US sanctions imposed on the project have derailed the company’s plans to begin production at the site in 2023.

Several of the company’s international partners such as South Korea and Japan pulled out of the project following the sanctions, but China has remained committed. It sees the project as key to Russia and China’s ‘no limits’ partnership and has been critical of the US for interfering.

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