RUSSIAN ARCTIC
NOVATEK
Yamal LNG is being constructed in demanding conditions
in numbers 12.8bn
barrels boe of proven hydrocarbon reserves
No 3
globally among publicly traded companies by proved natural gas reserves
66.1
bcm of natural gas produced in 2016
11% of total Russian natural gas production
No 6 globally among publicly traded companies by natural gas production volumes
20% of total natural gas delivered to the domestic market via the UGSS Source: Company records
Novatek plots
LNG GIANT
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Italy’s Saipem. “We are thinking of attracting a partner to manage the shipyard. We are in talks with three companies, including Saipem and also the companies that are supplying modules for the Yamal LNG plant. “The decision on creating a management company and choosing partners for it must be taken this year,” he said.
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LNG-2 takes shape The company has started building a Kola shipyard, where ice-resistant platforms for the 8 SUMMER 2017 www.frontierenergy.info
Arctic LNG-2 plant will be constructed, a major piece of development for the company. “We launched the Kola Shipyard project in late June. We have signed the first land removal, blasting and quarrying contracts,” says Leonid Mikhelson, Novatek CEO. The Novatek boss said it would announce several tenders for the construction of a dock and mooring area in the final part of 2017 and is hoping for a good response from contractors, particularly from Russian outfits. The Arctic LNG-2 natural gas liquefaction project includes the construction of a special dock for building reinforced concrete gravity platforms, drilling and production rigs for offshore Arctic projects, as well as other large marine facilities. Novatek is also weighing up its options of attracting foreign partners for managing the Kola Shipyard. Mikhelson says that it is holding talks with three partners, including
Around Rubles600 billion ($10 billion) will be invested in the Kola core development zone, says the Murmansk Region Governor Marina Kovtun. It’s a hugely strategic region for Russia. President Vladimir Putin said earlier this year: “As I mentioned at a meeting held in the Arctic, by 2050 about 30% of all hydrocarbons will be produced in the Arctic area. Some of our major projects are already being implemented there with Novatek building a plant, a company town, an airfield, and a port in the Arctic zone. “The so-called non-regional powers are showing an active interest in this region. That is a good thing, and we are willing to cooperate with them, but we must ensure our priority interests”. Kovtun added: “The Kola core development zone concept comprises more than 30 investment projects worth a total of close to Rouble500 billion,” and will include
Novatek
Kola investment AO Novatek is one of the largest independent natural gas producers in Russia with an operating focus on the Yamal-Nenets Autonomous Region (YNAO) in Western Siberia. The YNAO is the most significant gas producing region in Russia, accounting for approximately 80% of Russia’s natural gas production and 16% of global gas production. It’s also very active developing world-class infrastructure in the Kola Peninsula. The company’s stock is traded in London and is included on the FTSE4Good Series, an index designed to help investors integrate environmental, social and governance (ESG) factors into their investment decisions.