Saipem joins Artic LNG 2 project, company’s contract is worth 2.2 bln euros


Saipem is joining a joint venture with TechnipFMC and NIPIgazpererabotka to build the Arctic LNG 2 plant for the production of liquefied natural gas, the Italian company said in a press release.

"Saipem has been assigned a share of the project worth approximately 2.2 bln euro," according to the press release.

Saipem is to participate in the detailed design, procurement, fabrication, construction, commissioning and start-up of three liquefied natural gas (LNG) trains.

The Italian company is also engaged in laying pipes for the Nord Stream 2 pipeline.

Earlier it was reported that the sum of the contract of TechnipFMC, another participant of the joint venture for the implementation of Arctic LNG 2, is about $7.6 bln. The project’s total cost is estimated at about $25.5 bln.

About the project

The Arctic LNG 2 is the second project of Russia’s independent gas producer Novatek for production of liquefied natural gas. It is scheduled to start operations in 2022-2023 on the base of Gydan fields. Its capacity will be about 19.8 mln tonnes of LNG per year.

The project is implemented on the resource base of the Utrenneye field.

As of December 31, 2018, its proven and probable reserves under PRMS standards amounted to 1.138 trillion cubic meters of natural gas and 57 million tonnes of liquid hydrocarbons.

OOO Arctic LNG 2 company holds the license for LNG export. The project participants are PJSC Novatek (90%) and Total (10%).

Earlier, Chinese national companies CNOOC and CNODC, controlled by the Chinese oil and gas company CNPC, signed binding agreements with Novatek on joining the project. The share of each of them will be 10%, but the deal is yet to be closed.

In April, Mark Jetway, Deputy Chairman of Novatek’s Board of Directors said that the company plans to sell another 10% in Arctic LNG-2 before making an investment decision on this project, retaining 60% as a result.



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