The head of finance at Russia's largest independent gas producer was referring to Arctic LNG-1, which will exploit gas at the Soletsko-Khanavaiskoye, Geofizicheskoye and Trekhbugornoye fields on the Gydan peninsula to produce an expected 19.8 mln metric tons/year of LNG, according to Russia’s latest LNG strategy.
- Development would likely start in 2026 or 2027, right after Novatek finishes construction of its 19.8 mln mt/yr Arctic LNG-2 plant
Arctic LNG-3’s development will likely get underway in the 2030s, according to the CFO.
- Arctic LNG-1 has already attracted «strong partnership interest» but more exploration is needed before Novatek can begin the farm-out process
Partners will be necessary to share risks and costs, as was the case at Novatek’s Yamal LNG and Arctic LNG-2 facilities
The company will look to retain at least a 60% interest in the project
Despite its small size, the project is significant as it will showcase Novatek’s proprietary Arctic Cascade liquefaction capacity, which takes advantage of the low ambient temperature in the Arctic to increase efficiency.
Gyetvay said the project needed to operate for 12 to 18 months to assess the technology's performance over the course of different seasons, and adjustments would be made if necessary.