Yamal LNG Project, Sabetta, Russia
Yamal liquefied natural gas (LNG) project includes the development of the South Tambey (Tambeyskoye) gas field, located near Sabetta in the Yamal peninsula in Russia. The Russian Government has declared the project to be of national interest.
The project is being developed in three phases. The first phase is expected to be operational in late 2016, the second phase will be carried out in 2013-17 and the third phase in 2014-18.
An investment of $15bn to $20bn is expected to be made in the project.
Novatek is executing the project through its subsidiary Yamal LNG. It holds 80% interest in the project, while Total holds the remaining 20%.
Total became a partner in the project in October 2011. Novatek has signed an agreement with Gazprom for distribution of the LNG produced.
The engineering, procurement and construction (EPC) activities for the project are being carried out by the consortium of Technip and JGC.
Challenges associated with the LNG project site geology
Yamal peninsula is estimated to hold the largest gas reserves in the world. The region, however, has the toughest working conditions.
The land is boggy, making drilling operations a challenge. In the winter season, daylight is available only for a short period during which the majority of the operations need to be carried out.
In addition, the area is very remote, with no local workforce available. The nearest potential market is also located 3,000km away.
Despite these challenges, several companies are investing in the region to recover the large gas reserves. Novatek and Total are developing another project named Shtokman in the same region.
Reserves of the South Tambey (Tambeyskoye) onshore gas field
The South Tambey field was discovered in 1974. In 2010, 2D seismic studies were carried out at the field to understand the geological properties. The field contains 72 commercially viable gas layers, of which 33 are shallow dry gas layers and 28 are deeper gas layers. The depth of these layers varies from 900m to 2,850m.
Estimated reserves of the field stand at 44 trillion cubic feet (tcf) of gas and 550 million barrels of condensate. The proven reserves stand at 1.26tcf of gas and 51.6mt of gas condensate.
Infrastructure for the Yamal liquefied natural gas (LNG) project
The Yamal LNG project includes the construction of an LNG plant, a processing facility for gas and condensate treatment, a gas transmission pipeline, well sites, a gas gathering system, a sea port at Sabetta and a fleet of tankers for transportation of the LNG.
The LNG processing plant will have a capacity of 15.5mt/y of gas and 1mt/y of condensate. It will include three LNG trains, storage and loading facilities.
Due to the extreme climatic conditions in the region, construction of the LNG project is planned to be carried out through modular methods.
Erection of the facilities for field development presents some challenges due to the permafrost conditions in the region.
Due to permafrost, the underground layer of soil stays frozen for at least two years. The layer above it freezes and thaws with change in season.
As a result, the infrastructure cannot come in contact with this soil to ensure stability. In such conditions, the infrastructure is usually erected on stilts. A liquefaction technology suitable for these conditions will be chosen for the LNG plant.
The LNG loading / unloading tankers will have a deadweight of between 183,000t and 208,000t. They will be of ice-class and be able to operate in the harsh climatic conditions of the Yamal peninsula. Conceptual projection of the tankers is currently being carried out.
As many as ten tankers are expected to be built for the project. The tankers will help in transporting the LNG to markets in Europe, North America and Asia-Pacific region.
A power plant with a designed capacity of 376MW to support operations of the LNG plant will also be constructed as part of the project.
Contractors for the Russian 'national interest' onshore gas project
Chicago Bridge and Iron Lummus (CBI Lummus) was contracted to carry out the pre-FEED study for the project. It is also carrying out the FEED study for the project.
GE will supply six Frame 7E gas turbines, 18 centrifugal compressors, six variable speed drives and six Waste heat recovery units (WHRUs) for the LNG trains under a contract worth approximately $600m.
The company will also provide installation supervision and support during the project's commissioning stage.
Technopromexport has been contracted to construct the power plant, while Siemens will provide eight SGT-800 industrial gas turbines.
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