Novatek announced the discovery of new gas reserves in the Ob Bay area. “The discovery of a new field is an important starting point for the start of one of our future Arctic LNG projects,” words of the chairman of the company Leonid Michelson are quoted in the message of Novatek. “In terms of reserves, the North-Ob field is unique.” A preliminary assessment of the reserves of the field - at least 320 billion cubic meters. m according to the Russian classification, resources - from 900 billion cubic meters. It can become the base for the third Novatek project for the production of liquefied natural gas (LNG).
A year ago, Novatek updated its strategy, making a bet on the production of LNG based on the Yamal and Gydan fields. This allows him to bypass export restrictions and in the future can make the company one of the largest players in the global liquefied gas market. The management of Novatek talked about plans to increase the production of LNG to 57 million tons per year by 2030. Together with the approval of the strategy, the company stepped up exploration work on the licensed areas in the Arctic that belong to it. “Somewhere in 4–5 times we increased geological exploration in Yamal and Gydan,” Interfax reported in September to Michelson. “I think somewhere in 2021 we will have a resource base that will allow us not to talk about 57–58 million tons, but maybe about [production up to] 70 million tons per year.”
So far, Novatek has only one approved project - Yamal LNG with a capacity of about 17.5 million tons of LNG per year and worth about $ 27 billion. The raw material base of the company is the South Tambeyskoye field (Yamal) with reserves of 926 billion cubic meters. m of gas (according to PRMS classification). The first two technological lines of the plant (5.5 million tons each) have already been commissioned, the third is supposed to be launched at the end of 2018, the fourth (about 0.9 million tons per year) in 2019.
The second project of Novatek in the region is expected to be Arctic LNG-2 based on the Morning Field (Gydan). On September 18, Novatek reported that as a result of additional exploration, the reserves of the field were increased by more than 400 billion cubic meters. m to about 2 trillion cubic meters. The final investment decision (FID) for the construction of a plant with a capacity of 19.8 million tons per year (three liquefaction lines — 6.6 million tons per year) has not yet been made. But Novatek and French Total have already signed an agreement on the latter’s participation in the project. The cost of a 10% stake in the project in May was estimated at $ 2.55 billion. FID is planned to be accepted in 2019, and the first one will be launched at the end of 2023, Total reported.
In total, by 2030, Novatek intends to spend 2.5–2.8 trillion rubles. (up to $ 42 billion at the rate of October 10) for the construction of gas liquefaction facilities, indicated in the strategy. The company estimates the amount of capital expenditures on Arctic LNG-2 at about $ 20 billion. In addition to it, by the end of the next decade it is planned to build three more liquefaction production lines with the launch in 2026–2030.