The Russian federal government has approved an adjusted financial scheme to support construction of Novatek’s new Utrenneye natural gas terminal on the Gydan Peninsula located across the Gulf of Ob from Sabetta in the Russian Arctic.
The revised agreement will see the federal government’s investment in the project increased to 103.2 billion rubles while Novatek will account for the remaining 60.9 billion rubles, an overall increase of 14 percent from the project’s original projection. At the same time the construction period of the project will be extended by two years with the facility now expected to come on line in 2024.
The new terminal will house major LNG production components, including several gravity-based structures currently under construction at the Belokamenka yard in Murmansk.
Upon completion the terminal will serve Novatek’s Arctic LNG 2 project as well as the company’s planned Arctic LNG 1 development which is due to become operational sometime after 2026. Arctic LNG 2 is being developed to exploit the Salmanovskoye field, estimated to hold 1.98 trillion cubic meters of natural gas and 105 million tons of liquid hydrocarbons, while Arctic LNG 1 will exploit the Soletsko-Khanaveyskoye field, estimated to hold up to 1.8 trillion cubic meters of gas.