Novatek plans second LNG plant in Arctic

The LNG from Novatek's Arctic plants will be shipped out by tankers built for shipments in icy waters.

The gas producer will build a second LNG plant in the Yamal Peninsula. Parts of the resources will be shipped out through the Northern Sea Route.


The new plant will be based on the resources of the Salmanovskoye and Geofizicheskoye fields, both located on the eastern bank of the Ob Bay in the peninsula of Gydan. The total resources of the fields amount to about 380 billion cubic meters, the company informs.

The federal government has approved the plans and project development is due to start in 2018, Itar-Tass reports.

The first production phase (2018-2022) is planned to deliver an annual 5,5 million tons, while the second and third phases will bring output to more than 16 million tons per year. According to the news agency, the project will include the construction of a plant located in the Yamal Peninsula as well as the laying of pipelines across the Ob Bay.

Novatek is from before involved in the development of the Yamal LNG, a project based on the resources of the South Tambey field. The Yamal LNG is operated by a constellation of Novatek (60%), Total (20%) and CNPC (20%) and will deliver a total of 16,5 million tons liquefied gas.

The French energy major Total is reportedly strongly supporting the construction of a second LNG plant in the area.

In addition to South Tambey, Salmanovskoye and Geofizicheskoye fields, Novatek controls several other major resources in the area. Among them are the East-Tambey and North-Ob fields, both of them located offshore in the Ob Bay, and believed to hold up to 1,8 trillion cubic meters of gas.