TechnipFMC wins EPC contract for Arctic LNG 2 project in Russia

TechnipFMC has secured a contract to provide engineering, procurement, construction (EPC) services for Novatek’s planned Arctic liquefied natural gas (LNG) 2 project in West Siberia, Russia.

Situated in the Gydan peninsula, the development will feature three LNG trains, each with a capacity of 6.6Mtpa. These trains will be installed on three gravity-based structure platforms.

TechnipFMC said it will implement the project under a lump sum and reimbursable basis.

The work covers the EPC of the three LNG trains and related topsides, which will be manufactured on a modular basis in Asian and Russian yards.

TechnipFMC Onshore/Offshore president Nello Uccelletti said: “We are extremely honored to be entrusted with this new contract by Novatek and its partners. We are leveraging our successful track record on the Yamal LNG project and notably the modular fabrication scheme.

“This project recognises the experience and expertise of our teams as well as their capacity to deliver the most ambitious and innovative projects. It also confirms the leadership of TechnipFMC both in the LNG market and in the transition journey of the global energy industry.”

In April, Novatek signed separate agreements with two Chinese firms to sell a 20% stake in the planned project. The agreements were signed with China National Oil and Gas Exploration and Development Company (CNODC) and CNOOC.

Novatek owns a 90% interest in Arctic LNG 2 and the remaining 10% is held by French energy company Total.

A final investment decision on the Arctic LNG 2 project is anticipated to be made in the second half of this year.