The Yamal LNG board of directors approved a final
investment decision for the Yamal LNG project, consisting of
the development of the South-Tambeyskoye gas condensate field
and the construction of a natural
gas liquefaction plant on the Yamal Peninsula, officials
said on Wednesday.
All of the relevant corporate approvals had been
issued earlier by Novatek (80%) and Total (20%), the current
shareholders of Yamal LNG. In coming months, China's CNPC will
conclude a deal to buy a 20% stake from Novatek.
The Yamal LNG plant will consist of three
liquefaction trains with overall capacity of 16.5 million tpy,
according to the company.
The start of commissioning works at the first
liquefaction train is scheduled for 2016, with the planned
commercial launch of the first LNG
train in 2017.
The Yamal project also requires the construction of transport
infrastructure, including a sea-port facility and an
international airport located at Sabetta (north-east of the
Up to 16 ice-class LNG carriers of special ARC-7
design will be used to effect year-round transportation of LNG
to international markets.
The Yamal LNG project is a transformative
project for Novatek and a key element in the overall strategy
to develop the natural
gas resources on the Yamal Peninsula and increase the
output of LNG
from Russia," said Leonid V. Mikhelson, chairman of Novatek's
"In a relatively condensed period of time we have
accomplished quite a lot of work with the project establishing a very good
base to move forward with confidence to implement our plans,"
As part of the project implementation, main tenders
have been completed and key contracts have been signed,
according to company officials, with the EPC contract awarded
to the joint venture of Technip and JGC.
Overall capital expenditures of the project are now
estimated at $26.9 billion, of which $2.6 billion have already
been financed by the shareholders.
As of Wednesday, the orders for long-lead items
(including cryogenic heat exchangers, gas turbines, and the
compressors for the liquefaction trains) have been placed;
eight (8) production wells have been drilled, more than 3,100
construction workers are already on site.
Additionally, preparation of the construction site
for the LNG plant has been completed, the piling of the
foundation for the LNG tanks has begun, the construction of the sea-port and
airport has reached an advanced stage, and more than 70% of the
expected LNG production output has been contracted.
The successful sanction of Yamal LNG
strengthens Totals global portfolio to sustain post-2017
production over the next decades and further increases our
presence in a high potential region of Russia in terms of gas
resources," said Yves-Louis Darricarrère, presdent of
Total's upstream business.
"Yamal LNG has made tremendous progress in recent
months and Total will join forces with Novatek by harnessing
all of its expertise and effort to deliver this top-tier LNG
project within schedule," he