Novatek’s $27bn Yamal LNG project reaches full capacity

Novatek and Total said that the $27bn Yamal liquefied natural gas project (Yamal LNG project) in Russia has reached full capacity following the launch of the third LNG train.

The Yamal LNG project features three liquefaction trains with a total capacity of 16.5mmtpa, with each of the train having a capacity of 5.5mmtpa.

Total said that exports have commenced from the third LNG, a year ahead of the original schedule and within the initially allocated budget. The LNG project is backed by a fleet of Arc7 ice-class tankers and lower ice-class designated tankers to transport LNG cargos.

Total chairman and CEO Patrick Pouyanné said: “We are proud of the successful launch of all three LNG trains of the Yamal LNG project less than a year after the start-up of the plant. This constitutes an unprecedented achievement for the industry.

“The positive experience of Yamal LNG paves the way for further LNG developments alongside our strategic partner Novatek, including Arctic LNG 2, the next major development based on giant low costs resources in Russia’s far north.”

According to Novatek, the project has exported more than 100 LNG cargoes of around 7.5 million tons of the commodity to five continents since its first shipment in December 2017. In July, the first LNG cargo exports to China were achieved through the Northern Sea Route of the Arctic Ocean.

Novatek is the operator of the Yamal LNG project with a stake of 50.1% while Total has a stake of 20%. The other partners are CNPC and Silk Road Fund with stakes of 20% and 9.9%, respectively.

Located in Sabetta in the Yamal Peninsula, the Yamal LNG project processes the natural gas sourced from the onshore South Tambey gas and condensate field into LNG. The giant onshore field has 4.6 billion barrels of oil equivalent of reserves (boe).

In addition to the three initial trains, the LNG project comprises an integrated gas treatment and liquefaction facility along with storage tanks, and port and airport infrastructure.

Novatek management board chairman Leonid Mikhelson said: “We believe that Yamal LNG represents a unique benchmark for the global oil and gas industry in terms of project success and implementation. Moreover, the Yamal LNG project enabled us to become one of the major players in the global LNG market.”

Source: Compelo