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Yamal and Novatek are enhancing the cooperation

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The Yamal-Nenets Autonomous District and Novatek, the major independent gas producer in Russia, intend to expand the cooperation extensively, not to be limited by the commissioning of two big LNG facilities, with other joint social projects ahead, as reported by Dmitry Kobylkin, Governor of the YaNAD.

But first, the Governor informed that Yamal LNG under construction will be launched at the end of the year, as projected. The first tanker LNG load is scheduled for December, as Kobylkin specified.

As a reminder, the Port of Sabetta on Yamal received the ice-class LNG tanker Christophe de Margerie in March. Loaded with a test LNG batch, it reached the harbour through the Northern Sea Route. The vessel, named after the former Total CEO, Novatek’s partner within Yamal LNG projects, has become one of the 15 tankers to ship LNG from the plant to end users.

Yamal LNG is the LNG facility under construction with a projected capacity of 16.5 mtpa based on South Tambey Field. Its first phase is almost complete, to be commissioned this Fall. The shareholders of Ya,al LNG are Novatek (50.1%), Total (20%), CNPC (20%) and Silk Road Fund (9.9%).

The overall project cost is estimated at 27bn USD, comprising the cost of transport infrastructure – sea harbour and Sabetta airport on the Kara Sea shore. The future customers have already contracted 96% of LNG yield.

Then the Governor referred to another Novatek’s project in the region, Arctic LNG 2. It will be located on the opposite bank of the Gulf of Ob, on Gydan peninsula. The facility’s trains will be built on offshore platforms. The Head of the region thinks that the enterprise location will do less damage to the Arctic nature, than onshore facility.

“Arctic LNG 2 will be built on offshore platforms in the Guld of Ob. The platforms will be built on Kola peninsula in the Murmansk region. The project is developed by Novatek. It won’t contact the continent, which is cheaper and more eco-friendly,” – as Kobylkin emphasized.

The feed gas will be carried from the Salmanovsky field on Gydan. The CAPEX are estimated at 10bn USD. The construction will start in 2019.

“Now design documentation is under development, land allotment is already accomplished. The plant will process gas from continental and onshore fields, not offshore,” – he said.

Nevertheless, Kara Sea offshore deposit development is also in the cards of Russian petroleum companies and region. However, one may talk of it, when Yamal LNG and Arctic LNG 2 reach full capacities.

It was reported that the YaNAD and Novatek have concluded a side cooperation agreement for 2017. The agreement was signed by Dmitry Kobylkin, Governor of YaNAD, and Leonid Mikhelson, Novatek CEO. As follows from the document, Novatek will invest about 180m RUB in the regional scientific and social projects.

As specified by the Governor’s media office, the funds will be directed on Gydan survey and environmental monitoring, including ichthyologic research. Besides, oil and gas company will finance the target training of Yamal indigenous population for employment at fuel and energy enterprises, particularly, Yamal LNG. A part of funds will be allocated for the support of local agro-industrial sector and children charity fund Yamine.

“Yamal and Novatek are long-standing and reliable partners. The company’s production projects, currently underway in the region, have no equivalents worldwide and are known long before the commissioning. It is also of great value, that the needs of families, tundra workers, and Arctic kids is among the company’s top priorities. I truly appreciate such invaluable investment in the future of Yamal.”

As reported by Kobylkin, each year the cooperation with Novatek is supplemented by new combined efforts in the social scope.

Source: Teknoblog


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