Novatek has expected to launch the Arctic LNG-2 project’s first train by the end of this year, with LNG trains 2 and 3 to follow in 2024 and 2026, respectively. However, Western sanctions against Russia in response to the invasion of Ukraine and technical challenges have defied the Russian operator’s schedule.
Western based manufactures of large-scale gas compressors, heat exchanger and other key equipment, needed for this and any further Russian LNG export projects, have already given-up and local suppliers are unable to be capable replacements, at least for now.
The 19.8 MMT/Y Arctic LNG-2 project’s three trains are under construction on floating concrete gravity-based structure (GBS) at Russia’s Belokamenka yard.

 

Global LNG Info Analytics has assessed that construction of the Arctic LNG-2 project’s first train has technically progressed as schedule, the facility installation on the GBS is complete and ready to ship to the project’s site in the shallow waters of Gydan Peninsula.
Shipping operations of the first GBS should be arranged in summer, otherwise given the Arctic area’s environment condition Novated has no option but to delay it for one year as Boskalis which was contracted to lay the foundation of the train’s base has suspended work.
“In compare to the first train, given to the extensive USA and European sanctions, commissioning of the next trains (T2&3) in 2025 and 2026 would be more complicated.”

 

Sanctions have led to the withdrawal of the Arctic LNG-2 project’s main EPC contractor which is Technip, Saipem-Renaissance JV as well as several other international subcontractors.
* Technip Energies has said that its orderly exit from Arctic LNG 2 “is progressing” and all “operational personnel have been demobilized” from the project and Saipem had confirmed that it was in talks to end two contracts related to the project.
* Last year, Karpowership was in talks with Novatek over the construction of a 300-400 MW floating power station that can provide the first of the Arctic LNG 2 project’s three trains with energy to replace the turbines that originally were to be delivered by Baker Hughes which was to build 20 turbines of the LM9000 type to the Arctic LNG 2, seven of them to be applied in the project’s first train. Only four of the turbines were delivered before Western sanctions hit and Baker Hughes pulled out of Russia.
* Novatek has licenses from Linde Engineering to utilize the German company’s liquefaction technology for 12 trains, including the three at Arctic LNG 2 but Linde has said it will suspend new Russian projects.

Meanwhile, Novatek reportedly plans to launch a new 20.4 MMT/Y LNG export project in Murmansk region aimed to export first cargo in 2028-Q1.

 

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