Novatek estimates investments in Arctic LNG 2 to be at least $10 bln
MOSCOW. Nov 21 (Interfax) - Novatek is estimating investments in the LNG project, Arctic LNG 2, at an amount exceeding $10 billion, the company said in a presentation given by company management member Denis Khramov said at the Arctic Days in Moscow forum.
"[The estimate for capex] is very approximate. We will not spend less," he told journalists.
Earlier Novatek head Leonid Mikhelson said that the company is expecting to have significant savings at the new LNG project in comparison with Yamal LNG, capex in which was $27 billion.
Mikhelson said also that the company is planning to select the technical concept for the plant, which was prepared by Kvaerner, KBR and Linde.
Novatek still has not announced a tender for preparing the FEED study. The expected capacity of the plant is 16.5 million tonnes, however, other options have not been ruled out.
It is planned to build the plant on a gravity-based platform, and not on land.
Arctic LNG 2 is Novatek's subsidiary, and it is working on the project to build an LNG plant on the basis of the Salmanovskoye field on the Gydan Peninsula. Arctic LNG 2 holds a license for the export of LNG.
Proven SEC reserves of the Salmanovskoye (Utrennee) field as at the start of 2014 amounted to 235.2 billion cubic meters of gas, according to Russian classification - 1.165 trillion cubic meters of gas. Condensate reserves according to the SEC classification amounted to 8.61 million tonnes, according to the Russian classification - 44.48 million tonnes. Oil reserves according to the Russian classification amounted to almost 10 million tonnes.