EURASIA Third Major LNG project for Yamal Arctic Peninsula

OE Watch Commentary: continues to push expansion of energy extraction and export from the Arctic. The two (LNG) projects on the are already a major investment. As the accompanying article discusses, - Russia’s second largest natural gas producer- recently announced that it is building a third LNG project in the Arctic, to be developed exclusively with Russian technology. The LNG trains mentioned in the article refer to a liquefied natural gas plant’s liquefaction and purification facility. In order to transport LNG from one country to another, its volume has to be dramatically reduced. To do this, the gas must be liquefied by refrigeration to less than -161 °C. This refrigeration process is conducted in multiple units arranged sequentially- like a train. End OE Watch Commentary (Grau) “As if in a great rush to develop its Arctic resources, Russian natural gas company Novatek this week made clear that it is starting the development of a third LNG project in the Yamal region.”

Source: Atle Staalesen, “Novatek announces 3rd LNG project in Arctic: The LNG will be developed exclusively with Russian technology,” Barents Sea Independent Observer, 23 May 2019. https://thebarentsobserver.com/en/industry-and-energy/2019/05/novatek- announces-3rd-lng-project-arctic

Novatek announces 3rd LNG project in Arctic: The Ob LNG will be developed exclusively with Russian technology The Ob LNG will be based on the resources of the Verkhnetiuteyskoye and Zapadno-Seyakhinskoye fields, two structures located in the central part of the Yamal Peninsula. The fields hold a total of 157 billion cubic meters of natural gas and the projected new plant will produce up to 4.8 million tons of LNG per year. The plant and adjacent infrastructure will cost $5 billion and is to come in operation in year 2023… The development of the Ob LNG will run parallel to the Arctic LNG 2, the company’s far bigger project currently under development on the nearby Gydan Peninsula. The Arctic LNG 2 will produce up to 19.8 million tons, and the first of its projected three trains is to be ready by year 2023. The announcement of the Ob LNG project comes at the same time that Novatek signs a major contract with UK-based TechnipFMC for engineering and construction of the Arctic LNG 2. Novatek’s first Arctic project, the Yamal LNG, is already operating at full speed, which means an annual production of up to 16.5 million tons. Unlike the two other projects, the Ob LNG will be built exclusively with Russian-made technology. This will be up twice as cheap as with foreign technology… The new plant will be built in , near the installations serving the Yamal LNG. A pipeline will connect the plant with the two gas fields, and the Sabetta sea terminal will provide a route for exports.

Putin Visits Yamal LNG Plant in Dec 2017. Source: Kremlin.ru, http://en.kremlin.ru/events/president/news/56337, CC BY SA 4.0

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