After reaching a definitive agreement, Total has acquired a 10% direct interest in Arctic LNG 2. Total already had a 19.4% interest in Novatek, so the recent agreement bringing the overall stake in the Artic LNG 2 project to nearly 21.6%.
Total’s Chairman and CEO, Patrick Pouyanné stated, “Arctic LNG 2 fits into our strategy of growing our LNG portfolio through competitive developments based on giant low-cost resources primarily destined for the fast growing Asian markets.” Pouyanné also referred to the success of the Yamal LNG facility.
Front-end engineering and design (FEED) has been completed and lands cost estimates between $20 and $30 billion.
Artic LNG 2 is a liquified natural gas (LNG) project on Russia’s Gydan Peninsula. The LNG facility is expected to produce 19.8 million tons per year (MTPA) of LNG, equal to about 535,000 barrels of oil equivalent per day (BOE/D). Artic LNG will process over 7 billion BOE from the Utrenneye onshore field, utilizing three gravity-based structures and three LNG trains.
Artic LNG’s output will be shipped via ice-class LNG vessel through the North Sea Route. Final investment decisions are expected for the end of 2019 with initial start up planned for 2023.
