Russian LNG producer PAO Novatek’s emergence into a key pillar of global gas supply is one of the most riveting recent success stories in the oil and gas industry.
At a time when many LNG projects were contending with lengthy construction delays and significant cost overruns, there were ample reasons to doubt that an LNG export project sited in a remote part of Northern Siberia could be delivered on time and on budget.
Novatek have disproven all the naysayers. Despite its challenging location, the 16.5 mtpa Yamal LNG project delivered its first cargo in 2017 and reached full capacity in late 2018, twelve months ahead of schedule.
In September, the company announced that a final investment decision had been taken on the project’s successor, Arctic LNG 2. The 19.8 mtpa project will draw feed gas from the massive Utrenneye field on the opposite side of the Ob river from Yamal LNG.
Plans have also been advanced for a third Arctic LNG project in the Yamal region, as well as two transhipment facilities, one based in Murmansk and the other in Kamchatka.
In this interview segment recorded live at the LNG Global Congress in London, Novatek’s Chief Financial Officer Mark Gyetvay speaks to David Ledesma, an energy strategy consultant and senior fellow at the Oxford Institute for Energy Studies.
Their discussion delves deep into the details of Arctic LNG 2’s unique modular construction concept, the hybrid approach taken to financing the project, the importance of Novatek’s logistical strategy and the impact of geopolitical rhetoric on Russian LNG exports.