Novatek Obtains Russian Liquefaction Patent
Russia’s third largest gas producer Novatek has said it has obtained a patent for LNG technology.
Announcing March 21 receipt of Russian federal patent number RU 2645185 C1 for its proprietary ‘Arctic Cascade’ natural gas liquefaction technology, it described this as based on a two-stage liquefaction process that capitalises on the colder ambient Arctic temperatures to maximise energy efficiency during the liquefaction process.
“Arctic Cascade” is Novatek’s first patented liquefaction technology using equipment produced by Russian manufacturers, said the company’s first deputy CEO Alexander Fridman: “Our goal is to localise the fabrication and construction of LNG trains and modules to decrease the overall cost of liquefaction and develop a technological base within Russia”. However the Novatek statement made no mention of yet having secured patents in other important jurisdictions such as the European Union or US.
Much of the proprietary technology used in liquefaction is owned by US firms, such as ConocoPhillips’ patented ‘Optimized Cascade’ process. Novatek is anxious to reduce reliance on western technology in case international sanctions against Russia are stepped up, but it has cooperated with Technip and Linde, two European firms with liquefaction patents, and Russian research institute Nipigaz. In May 2017, Novatek signed a licensing agreement with Linde for liquefaction technology for its Arctic LNG 2.
Late 2017, Novatek completed the first of three liquefaction trains at Yamal LNG, its first LNG complex. Novatek has a 50.1% stake, alongside Total and China’s CNPC each with 20%; and China’s Silk Road Fund 9.9%. The export venture in western Siberia, once fully completed, will have capacity to produce 16.5mn mt/yr.
Three months ago Novatek said its Arctic-2 LNG is expected to cost about $19bn and to produce 18.3mn mt/yr by 2023. Among potential investors in the project that it is wooing are Saudi Aramco, which today has no LNG assets and with which Novatek signed a memo of understanding last month, and Japan's Marubeni. However plans to take an Arctic-LNG 2 final investment decision, initially targeted by Novatek last year for the end of 2017, have slipped into 2018.