Novatek

The license covers exploration and development of area fields for next 27 years.

The newbuilds are slated for delivery in 2024.

Yamal LNG Resource, a subsidiary of Russia’s Novatek, has won exploration and production licenses to expand its Arctic resource base for sustained long-term growth of its LNG business.

Russia’s second-largest gas producer plans to raise $11 billion with the help of China, Japan, and Europe.

The meeting with project partners comes less than a month after Mammoet was awarded an unloading, transportation, and installation contract.

The contract is Mammoet’s biggest in terms of aggregate tonnage. The Arctic LNG 2 project reached FID in September 2019.

With a production capacity of nearly 20 mtpa, Wood Mackenzie says the project would be the largest single project to reach FID. Novatek plans to spend more than $21 billion to launch the project at full capacity. Startup is scheduled for 2023.

The Russian independent will likely sell an ownership stake to an additional partner in the coming weeks, joining Total, CNOOC, and CNPC. FID is expected to take place later this year.

The 15-year deal calls for 1 million tons of LNG to be shipped each year to the Iberian Peninsula. Final investment decision on the project is expected in the second half of 2019, with the first liquefaction train scheduled to start up in 2023.