LNG

Novatek, the Russian natural gas company and operator of the Yamal LNG export plant and developer of the delayed Arctic LNG II venture, has reported positive operating data for the second quarter of 2024 amid continued Western sanctions.

The Russian Finance Ministry said that that the federation’s oil and gas revenues decreased by 26 percent in the first 10 months of the year amid warnings that natural gas and LNG producer Gazprom was heading for record losses and another gas company Novatek faced financial disruption to its Arctic LNG II project.

Russian natural gas company Novatek has plans to start commercial shipments from the Arctic LNG II project in mid-January 2024 and would likely send three to five cargoes per month eastwards to the Asian market, including China, while Russia’s Sakhalin LNG plant in the Far East has re-started after scheduled maintenance.

Russian natural gas company Novatek has held a ceremony with the Russia’s government to mark the launch of the first modular liquefaction Train onboard a gravity-based structure at an assembly yard in the Murmansk region and set to be towed to the Gydan Peninsula project site on the Gulf of Ob in Western Siberia.

Novatek, the Russian natural gas company and operator of the Yamal LNG export plant and developer of Arctic LNG II currently under threat from Western sanctions imposed because of the Ukraine invasion, said LNG cargoes sold on international markets fell in the second quarter.

Two liquefied natural gas LNG carriers, the “Boris Davydov” and the “Rudolf Samoilovich” after safely completing the final leg of their East-West voyages on the Northern Sea Route which has become ice-bound earlier in the 2021-2022 winter season.

“Two LNG carriers Boris Davydov (in the Laptev Sea) and Rudolf Samoilovich (in the East Siberian Sea) continue their voyages to the port of Sabetta without ice-breaker support,” said the NSR information office.

The 172,000 cubic metres capacity “Boris Davydov” was due to berth on November 25 at the Novatek-operated Yamal LNG export plant at Sabetta in northern Siberia.

The vessel had previously delivered an LNG shipment to the Chinese port of Jiangsu, according to the Russian NSR data.

The “Rudolf Samoilovich” was also heading for Sabetta and is scheduled to arrive on November 27. The ship had last visited the Russian Far East port of Nakhodka, though had delivered a shipment of LNG to the Tangshan terminal in the Caofeidian Industrial Zone of Hebei province.

Speed

“At the time of the report, their speed was 16-18 knots,” added the NSR body.

However, another vessel, the “Mechanic Pustoshnyy”, is drifting in the Laptev Sea, and a second ship, the “Mikhail Somov”, is adrift in the western part of the Vilkitskiy Strait.

The report concluded that in the western part of the NSR, the icebreaker “Yamal” finished the escorting of the ships “Yurii Arshenevskiy” and “Vitus Bering” at Cape Zhelaniya.

The Yamal plant is the focus of NSR energy shipping activity. It has three liquefaction Trains on stream, each with nameplate capacity of 5.5 million tonnes per annum, as well as a smaller fourth Train with 900,000 tonnes of output, taking overall production to 17.4 MTPA.

All the LNG vessels serving Yamal LNG are around 172,000 cubic metres capacity and have ice-class Arc7 notation.

The Arc7 design allows ice-class LNG carriers to break through ice that is up to 2 metres thick.

The Russian shipbuilding company, Zvezda Shipbuilding, is building a series of 15 next-generation Arc7 ice-class LNG vessels for Russian natural gas company Novatek’s Arctic LNG II project under construction on the Gydan Peninsula in the same region as the Yamal facility.

These newbuild Arc7 LNG vessels have increased ice-breaking and manoeuvring characteristics compared with the existing fleet used by the Novatek-operated Yamal LNG project.

The 15 carriers will be registered and flagged under the Russian Federation and operated by the Russian crew when delivered. 

Arctic LNG II project developer Novatek hosted a forum for contractors and suppliers, attended by more than 160 companies, to keep the venture on track for a 2024 start-up and to expand cooperation at the Novatek LNG Construction Centre at Belokamenk in the Murmansk region of northern Russia.

Chinese shipyard Wison Offshore and Marine has completed four modules to make up the first liquefaction Train at the Arctic LNG II export plant being developed on the Gydan Peninsula in northern Siberia and the equipment was scheduled to be shipped during September.

The Arctic LNG export project under construction on the Gydan Peninsula in northern Siberia will benefit from a new airport that as just come into service to speed-up the transportation of material and engineering personnel to the work sites.

Novatek, the Russian natural gas company and LNG operator and developer, said the Arctic LNG II project on the Gydan Peninsula had reached a project financing agreement among the joint venture shareholders from Russia, France, China and Japan.