Novatek Hires TechnipFMC for Arctic LNG

Russian LNG developer Novatek has signed with TechnipFMC a contract on engineering, procurement, supply, construction and commissioning of an integrated liquefied natural gas facility in Russia's far north.

Arctic LNG-2 will have annual liquefaction capacity of 19.8mn metric tons/year and the contract terms provide for the launch of the first train of the project in 2023.

“The team, which implemented the unique Yamal LNG project in record time and on budget, has now joined an even larger and more innovative project,” noted Novatek’s CEO Leonid Mikhelson May 20. “We are confident that the accumulated experience of mutual co-operation on the construction of LNG plants in the Arctic zone will also ensure the successful and timely implementation of our new project Arctic LNG 2.”

Novatek's CFO Mark Gyetvay has said that the cement-pouring for the first gravity-based structure (GBS) would start in July and the company had mentally already taken final investment decision. He told the Flame conference in Amsterdam May 13 that 75% of the equipment had been contracted, and Nuovo Pignone would supply the 68-MW compressors for the liquefaction process. They were small enough for the GBS, he said.

The company is developing its own liquefaction technology, and is hiring 5,000 engineers to work on liquefaction at its LNG centre of excellence. "Russia has a long history in oil and gas," he said. "Now there are only four main liquefaction plant manufacturers and we want to unlock the bottleneck."