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Total and Associates Greenlit Russian Artic LNG 2 Development Venture

Total, Novatek and the other venture shareholders have accredited the final investment decision for Arctic LNG 2, a major LNG development situated on the Gydan peninsula, Russia. The initiative will have a production capability of 19.8 MM tons per year and is predicted to export its first LNG freight by 2023, the second and third practice to start up by 2024 and 2026.

“Arctic LNG 2 will use the triumph of the Yamal LNG project and can ship competitive LNG to the markets in four years,” commented Patrick Pouyanné, chair and CEO of Total. “Arctic LNG 2 adds to our rising portfolio of competitive LNG developments based on giant low-cost resources primarily meant for the quick-rising Asian markets.”

The project has meager upstream costs with the development of the giant resources from the Utrenneye onshore gas and condensate area. The installation of three concrete gravity-based structures in the Gulf of Ob on each of which will likely be located a 6.6 Mt/y liquefaction train will add to significant CAPEX discount (over 30% per ton of LNG) compared to Yamal LNG. Additionally, the proximity to Yamal LNG will permit Arctic LNG 2 to leverage synergies with existing infrastructure and logistics.

Arctic LNG 2 production will be sent to international markets by a line of ice-class LNG carriers that will be using the Northern Sea Route and the transshipment end in Kamchatka for freight destined for Asia and the transshipment terminal near Murmansk for shiploads destined for Europe.

Total has a direct 10% interest in Arctic LNG 2 alongside Novatek, CNOOC, CNPC  and a Mitsui-Jogmec consortium, Japan Arctic LNG. Total further owns an 11.6% indirect participation in the initiative through its 19.4% stake in Novatek, thus an aggregated economic interest of 21.6% in the challenge.

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Susie Rodgers

Susie is working for the column providing news articles for the natural gas category. She worked in many plants until she decided to be a writer and write about the sector enhancing it with her on hand experiences. She is a very down to earth person and loves to stay at her cubicle doing all the editing. Time management is her story of success, and we are fortunate to have her on board.

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