TechnipFMC wins $7.6bn Arctic LNG 2 project contract

Arctic LNG 2 project contract : Novatek has awarded TechnipFMC an engineering, procurement and construction contract (EPC contract) worth $7.6 billion for the Arctic LNG 2 project in West Siberia in Russia.

Under the Arctic LNG 2 project contract, TechnipFMC, which will execute the work under a lump sum and reimbursable basis, will provide engineering, procurement and construction contract of the three LNG trains and their topsides. The equipment will be manufactured on a modular basis in Asian and Russian yards, said TechnipFMC.

TechnipFMC wins $7.6bn Arctic LNG 2 project contract. Image by Free-Photos from Pixabay.

Arctic LNG 2 project location

The $21-23bn Arctic LNG 2 project with three LNG trains will come up in the Gydan peninsula and will have a production capacity of 19.8 million tons per year (mtpa). Each of the liquefaction trains will have a production capacity of 6.6mtpa.

Commenting on the Arctic LNG 2 project contract, Nello Uccelletti – TechnipFMC onshore/offshore president said: “We are extremely honored to be entrusted with this new contract by Novatek and its partners.

“We are leveraging our successful track record on the Yamal LNG project and notably the modular fabrication scheme.

“This project recognizes the experience and expertise of our teams as well as their capacity to deliver the most ambitious and innovative projects. It also confirms the leadership of TechnipFMC both in the LNG market and in the transition journey of the global energy industry.”

Arctic LNG 2 project details

Targeted to be brought into service in 2023, the Arctic LNG 2 plant will be fed with gas sourced from the Utrenneye gas and condensate field in northern West Siberia. The Utrenneye field has an excess of seven billion boe of resources in place.

As part of the Arctic LNG 2 project, three gravity-based structures will be installed in the Gulf of Ob and associated storage facilities for LNG which can hold a total of 687,000m³.

The companies involved in the Russian LNG project are Novatek with a 60% operating interest, French oil and gas giant Total, Chinese firms CNPC and CNOOC, and Japan Arctic LNG – which is a consortium of Mitsui & Co and Japan Oil, Gas and Metals National Corporation. Barring Novatek, all the other partners are having 10% stake each in the Arctic LNG 2 project.