Utrenny terminal facilities of Arctic LNG 2 project to be put into operation in May 2023
Equipment for the first technological train of about 7 million tonnes in capacity will be delivered to the terminal in autumn
The facilities of Utrenny terminal for LNG and gas condensate built in Sabetta seaport on the Yamal peninsula under the Arctic LNG 2 project are to be put into operation in May 2023, according to the official portal for Russia’s national projects. Equipment for the first technological train of about 7 million tonnes in capacity will be delivered to the terminal in autumn.
Shipments of LNG and gas condensate from the Utrenny field on the Gydan Peninsula will begin after the first train undergoes start-up and commissioning procedures.
The Utrenny terminal is section No 2 of Sabetta seaport in the framework of NOVATEK’s Arctic LNG 2 project. The terminal construction including the federally owned facilities and the reconstruction of the seaway canal are included into the Comprehensive Plan for Modernization and Expansion of Core Infrastructure (CPMI) until 2024. 5.6-km long and 510-m wide access canal to the Utrenny terminal will ensure navigation in fast and drift ice conditions. The scope of dredging is estimated at about 60 million cbm, the cost of dredging works – at RUB 37.5 billion. Total cost of the LNG terminal is RUB 95.7 billion with the state budget of the Russian Federation covering 70% of the project cost.
The Utrenny terminal will ensure export shipment of 21.6 million tonnes of hydrocarbons under Arctic LNG 2 project which provides for construction of three LNG trains with the total annual capacity of 19.8 mtpa. The facility will also produce at least 1.6 mtpa of stable gas condensate.
In December 2022 Russian President Vladimir Putin signed the federal law to extend simplified import of equipment for the Arctic LNG 2 project until 2025. According to the explanatory note to the bill, a decision to import partly assembled technological equipment for Arctic LNG 2 was made because the expansion of the coronavirus infection in 2021-2022 and amid the current geopolitical situation. Considerable number of such modules is to be delivered by sea from China in 2023.
PAO NOVATEK is the largest independent natural gas producer in Russia and the key LNG developer in the Arctic. Some western companies including Technip (France), Saipem (Italy) and Baker Hughes (USA) earlier withdrew from the NOVATEK’s project. Therefore, Arctic LNG 2 project faces considerable delays. According to earlier statements, the first LNG train is to be put into operation not earlier than in the end of 2023, one year behind the schedule.
