Foreign shareholders have frozen their participation in the Arctic LNG-2, Kommersant newspaper reported. French Total Energies, Chinese CNPC and CNOOC and a consortium of Japanese Mitsui and JOGMEC announced force majeure on participation in the project.
This may lead to the fact that Arctic LNG-2 will lose long-term LNG export contracts, and NOVATEK will independently finance the project.
The Arctic LNG 2 taps into resources of the Utrenneye field discovered in 1979 in the Gydan peninsula (Yamalo-Nenets Autonomous Okrug, Russia). It lies approximately 70 km away from the Yamal LNG project at the east shore of the Ob Bay. The proved and probable reserves of the Utrenneye field are 1,434 bcm of natural gas and 90 mmt of liquid hydrocarbons.
The Project will build three liquefaction trains capable of producing a total of 19.8 MTPA of LNG and 1.6 MTPA of SGC. The limited liability company Arctic LNG 2 operates and owns all the assets. It is a joint venture of the russian company NOVATEK (60%), TOTAL Group (10%), Chinese corporations CNPC (10%) and CNOOC (10%), and JAPAN ARCTIC LNG (a consortium between Japanese MITSUI and JOGMEC) (10%).
In 2018, Project completed the front-end engineering design (FEED) and started site preparation, construction of early phase power supply facilities, production wells drilling, and construction of the quayside.
The participants of Arctic LNG 2 approved a final investment decision (FID) for the project in September 2019. Capital expenditures to launch the project at full capacity is estimated at $21.3 billion equivalent.
