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SAFETY4SEA

Two Chinese companies sign to enter Arctic LNG 2

by The Editorial Team
April 30, 2019
in Fuels
arctic lng 2

Location of Yamal and Arctic LNG 2

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China National Oil and Gas Exploration and Development Company Ltd (CNODC), a wholly owned subsidiary of China National Petroleum Corporation (CNPC), and China National Offshore Oil Corporation (CNOOC) have signed a binding agreement with Russian natural gas producer Novatek, to enter the Arctic LNG 2 project.

The parties signed the two agreements at the Second Belt and Road Forum for International Cooperation, Novatek informed. Both agreements concern a 10% participation interest by each company in the Arctic LNG 2 project.

Specifically, the binding agreement with CNODC was signed in the presence of Leonid Mikhelson, Chairman of the Management Board of Novatek, and Wang Yilin, Chairman of CNPC.

The agreement is an important milestone in our Arctic LNG 2 project implementation as well as a continuation of our successful cooperation with CNPC. We successfully launched the Yamal LNG project on budget and ahead of initial schedule as partners, which is a unique achievement in the global gas industry. The accumulated experience of working together is a solid basis for the successful implementation of our new LNG project,

…noted Leonid Mikhelson, Novatek’s Chairman of the Management Board.

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In the same way as for Yamal LNG, Arctic LNG 2 production will be delivered to international markets by a fleet of ice-class LNG carriers that will be able to use the Northern Sea Route for cargoes destined for Asia.

With a production capacity of approximately 19.8 million tons per year (Mt/year), or 535,000 barrels of oil equivalent per day (boe/d), Arctic LNG 2 is estimated to unlock more than 7 billion boe of hydrocarbons’ resources in the onshore Utrenneye gas and condensate field.

As of 31 December 2018, the Utrenneye field’s 2P reserves under PRMS totaled 7,981 million barrels of oil equivalent.

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms.

Tags: ArcticOne Belt One RoadRussiaYamal LNG

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