(Rigzone,Thursday, September 05, 2019) -- Novatek revealed Thursday that a final investment decision has been made for the Arctic LNG 2 project.

The project consists of the development of the Utrenneye field and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region. The LNG plant will consist of three liquefaction trains with overall production capacity of 19.8 million tons per annum, according to Novatek.

The launch of LNG train 1 is scheduled for 2023, with LNG trains 2 and 3 set to be launched in 2024 and 2026, respectively. Capital expenditure to launch the project at full capacity is estimated at $21.3 billion.

“Novatek has emerged as one of the key players of the global LNG market with the successful launch of Yamal LNG,” Novatek Chairman of the Management Board, Leonid Mikhelson, said in a company statement.

“Today, we have taken another step forward in our goal to become one of the largest LNG producers in the world by approving the final investment decision on our second large-scale LNG project – Arctic LNG 2,” he added.

“We are confident that the accumulated construction experience, state-of-the-art technologies, proven logistics solutions and partnerships with best-in-class international companies will ensure the effective implementation of our new LNG project,” Mikhelson continued.

The Arctic LNG 2 project participants comprise Novatek, which has a 60 percent interest, Total, which has a 10 percent interest, CNPC, which has a 10 percent interest, CNOOC Limited, which has a 10 percent interest and the Japan Arctic LNG consortium of Mitsui & Co and Jogmec, which holds the remaining 10 percent interest.

Back in July, Novatek announced the closing of the sale of participation interests in Arctic LNG 2 to CNPC, CNOOC and the consortium of Mitsui & Co and Jogmec.

Founded in 1994, Novatek describes itself as the largest independent natural gas producer in Russia. The company is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons, according to its website.

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