Arctic LNG 2

About the Arctic LNG 2 project

The project includes three technological lines for the production of liquefied natural gas with a total capacity of 19.8 million tons of LNG per year and stable gas condensate up to 1.6 million tons per year.

The project operator and owner of all assets is Arctic LNG 2 LLC, a joint venture of NOVATEK PJSC (60%), TotalEnergies concern (10%), Chinese corporations CNPC (10%) and CNOOC (10%) and JAPAN ARCTIC LNG (consortium of Japanese companies MITSUI and JOGMEC) (10%).

In 2018, the main technical solutions and design documentation (FEED) were completed, engineering preparation of the territory, construction of priority energy supply facilities and drilling of production wells, and construction of a quay began.

Arctic LNG 2 participants made the final investment decision on the project in September 2019. Capital investments to launch the project at full capacity are estimated at the equivalent of $21.3 billion.

The application of a technological concept of construction based on the gravity type, as well as extensive localization of the production of equipment and materials in Russia, will significantly reduce capital costs per ton of LNG produced within the framework of this project. This will ensure low production costs and maximum competitiveness in all LNG markets.

Advantages of the Arctic LNG 2 project

Reducing greenhouse gas emissions is a critical goal in the global response to climate change. The Arctic LNG 2 project fully shares this principle and strives to be a leader among LNG projects in terms of minimum emissions through the introduction of the latest technologies and control of carbon emissions throughout the entire LNG production chain: production, liquefaction and its supply to end consumers.

Minimum environmental impact in the project area

• The project is based on the concept of creating liquefaction lines on gravity-type foundations - there is no work on the construction of an LNG plant at its location.
• There are no discharges of industrial wastewater into the waters of the Ob Bay. A system for treating and pumping wastewater into the deep layers of the geological environment has been introduced.

Energy efficiency

• Northern conditions allow for one of the lowest specific energy costs for liquefaction in the world.
• Maximum energy efficiency of liquefaction is achieved through the use of a mixed refrigerant at all stages of liquefaction, the composition of which adapts to environmental conditions.
• The technological process makes maximum use of heat and cold recovery, which minimizes energy costs.
• For mechanical drive and power generation, aircraft-derived gas turbines with the highest fuel efficiency are used.
• Due to the high energy efficiency of production, greenhouse gas emissions per ton of LNG produced are more than 30% lower than the industry average.

Low specific methane emissions

• The boil-off gas is returned to heat exchangers for liquefaction or used as fuel to generate electricity.
• No routine gas flaring.

LNG transportation

The fleet of gas carriers created to transport products produced by Arctic LNG 2 uses LNG as fuel - one of the cleanest types of marine fuel.

Contribution to global decarbonization

• Natural gas, due to its environmental and price characteristics, will play a key role in global decarbonization in the long term.
• The environmental characteristics of the Arctic LNG 2 project will ensure its long-term competitiveness in the context of the transition to a low-carbon economy and increasing requirements for LNG projects to reduce CO2 emissions.

"Morning field"

The resource base of the Arctic LNG 2 project is the Utrenneye field, discovered in 1979 and located on the Gydan Peninsula in the Yamalo-Nenets Autonomous Okrug, approximately 70 km from the Yamal LNG project on the eastern shore of the Ob Bay.

As of December 31, 2020, the proven and probable reserves of the Utrenneye field according to PRMS standards amounted to 1,434 billion cubic meters of natural gas and 90 million tons of liquid hydrocarbons.

A full-scale range of geological exploration works is being carried out at the field: 2D and 3D seismic surveys have been completed; prospecting, appraisal and exploration wells were drilled, including 4 wells for Jurassic deposits; In order to obtain additional geological and geophysical information, the first production wells of cluster sites are laid with pilot shafts.

Production drilling began in 2018. In total, it is planned to drill 213 production wells at twenty well pads.

8 drilling rigs are operating at the field.

All Utrenny production wells are directional with a horizontal end, the length of the horizontal section reaches 1500 m.

A license for exploration and production of hydrocarbons has been issued to Arctic LNG 2 LLC for a period of up to 2120.

LNG plant and SGC

The project includes a Plant for the production, storage and shipment of liquefied natural gas (LNG) and stable gas condensate (SGC), consisting of three technological lines with a total capacity of 19.8 million tons of LNG per year and stable gas condensate with a total capacity of up to 1.6 million tons per year SGK. The technological lines have a total LNG storage capacity of 687,000 cubic meters and 225,000 cubic meters of SGC.

Each production line consists of:

• Gravity-type concrete foundation, including LNG and condensate storage tanks, as well as auxiliary systems;
• Topside modules for the preparation of feed gas and condensate, production of LNG and SGC as products, including offloading facilities, special main power supply and emergency generation systems.

Three process lines share onshore facilities, including the central control room, onshore pipeline racks, electrical substation, high pressure flare, glycol water solution start-up boiler, ice control system, etc.

The gravity-type foundations were manufactured in two dry docks of the Center for the Construction of Large-Capacity Offshore Structures (TSSKMS), located in close proximity to the village of Belokamenka (Murmansk region).

In parallel with each base, modules of the upper structures were manufactured at production sites in Asia and Russia. At TsSKMS, the finished modules are installed on the bases using a lifting and sliding system, after which they are connected into a single structure.

The finished technological lines were towed to the Gydan Peninsula, where they were installed on a prepared offshore foundation in the coastal zone. After which they were connected to onshore facilities, gas turbines were ignited, and final commissioning was carried out.

The first production line was launched in 2023.

Utrenny Airport

For the purposes of the Arctic LNG 2 Project, the Utrenny airport was built on the territory of the license area. The airport is an air transport infrastructure facility and is intended to transport rotational personnel to the Morning Field as part of the implementation of the Arctic LNG 2 Project.

The airport complex includes a class "G" airfield, a runway 1,550 x 36 m, ICAO category I, a service and passenger building with a capacity of 100 passengers per hour. The airport can accept aircraft of various types An-12 (with weight restrictions), An-24, An-26, ATR-42, ATR-72, Dash-6-400, Dash-8 (Q-200, Q-300) , L-410, Mi-8, Mi-26. The airport is open all year round.

Utrenny Airport is a separate division of Sabetta International Airport LLC.

Terminal "Morning"

The Utrenny terminal is section No. 2 of the Sabetta seaport and is being built as part of the Arctic LNG2 Project. The construction of the Utrenny Terminal in the seaport of Sabetta, including federal property (underwater hydraulic structures, ice protection structures, navigation safety facilities), as well as the reconstruction of the sea channel, are included in the Comprehensive Plan for the Modernization and Expansion of the Main Infrastructure.

The main facilities of the Morning Terminal are divided into investor facilities (Arctic LNG LLC) and federal property facilities.

The terminal for liquefied natural gas and stable gas condensate "Utrenny" (Terminal "Utrenny") includes: a water area protected from external influences with berths for various purposes, engineering infrastructure, and an onshore part with administrative buildings and structures.

The Morning terminal consists of two parts:

• At the universal berth, combined with the administrative area, liquid cargo and cargo necessary for organizing construction and installation work for the entire project as a whole are received. The berth provides year-round reception of ships.
• A mooring embankment with an artificial land plot is necessary for the placement of the Plant's Onshore facilities; it was built as a dual-use facility. At the first stage of the Project, it served as a berth for receiving construction cargo. Subsequently, Technological lines were installed next to it and their junction with the Onshore facilities of the Plant was organized.

The approach channel to the Utrenny Terminal, 5.6 km long and 510 m wide, ensures navigation in conditions of fast and drifting ice.

LNG transportation

The unique location of the Gydan Peninsula makes it possible to create a flexible, competitive logistics model that ensures year-round supplies of LNG to LNG transshipment complexes in the Murmansk region and Kamchatka for further transportation of LNG to the markets of Europe and the Asia-Pacific region. 80% of the LNG from the project is sent to the LNG complex in Kamchatka, 20% to the LNG complex in Murmansk.

LNG is supplied by special ice-class tankers ARC7, while transportation eastward along the Northern Sea Route in winter is carried out accompanied by nuclear icebreakers.

The ARC7 ice class tankers (according to the Russian classification), specially created for the Arctic LNG2 Project, were specially designed to carry out year-round navigation without icebreaker support in a western direction and during summer navigation - in an eastern direction along the Northern Sea Route .