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• Russian President Vladimir Putin

Russian Firm Plans $47.6bn Investment in LNG Project


By Yemi Akinsuyi

Russian Company, The Arctic, plans to commit a whopping $47.6bn in complex LNG projects at the gas company’s Novatek’s playground, within the Arctic circle. Once fully operational, LNG 2 will be pumping out 18.3m cubic metres of liquid gas a year.

“Our plan is to create a major LNG production centre in the Russian Arctic zone that will rival Qatar, Australia and the United States,” said Novatek CFO Mark Gyetvay.

Total and CNPC each hold a 20% stake, while China’s Silk Road Fund owns a 9.9% share. Novatek’s controlling share comes to 50.1%. Russia’s second largest gas company says it will secure full finances by 2019.

Arctic LNG 2 will ultimately be made up of three 6.6-million-ton capacity LNG trains. Production will use a gravity-based structure (GSB) offshore in the Ob Bay.

Another Russian firm operating in the Rakuschechnoye Field development, Lukoil is already planning its next phase of its Caspian activity by developing its share of the rich Rakuschechnoye oil field.

The oil field, discovered in 2001, Rakuschechnoye holds up to 39 million tons of oil alongside 33 billion cubic metres of natural gas.

At Rakuschechnoye, Lukoil has made its final infrastructure decision. the company plans  to  construct a fixed offshore ice-resistant platform, a dedicated living quarters platform, a crossover bridge, plus subsea interfiled pipelines and cable lines, connecting this rig to the V. Filanovsky project.

Drilling and construction work is only just entering the planning stages. Lukoil has outlined a commercial production start date of 2023. Once up and running, Rakuschechnoye’s oil production plateau will flat out at 1.2 million tons annually.

“The future of Russian energy lies in the Arctic. Much of this will take part in the Western Arctic, where Arctic LNG 2 is located for example. That means Russian firms can draw upon their partners’ unique expertise in sub-zero temperatures.

“We can see the Arctic’s potential in Rosneft’s license blocks. The company alone holds 19 license blocks for exploration across Wester Arctic seas,” said a document released by  Semjon Sergeienkov, International Sales Executive  at ITE Group Plc,  

carrying the company’s  promo  to the forthcoming Crocus Expo, Moscow slated for April  23-26, 2019.

The document said Russia’s Arctic ambition comes with a real need to start developing, or begin buying, extreme-weather resistant equipment.

“ We are talking cold-resistant jacks, rigs, subsea umbillicals, and so on. Sanctions will lower Russian access to this technology, but with options like localised equipment manufacturing worth exploring, there are lots of avenues open to suppliers in the current climate,” the document said.



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