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    Rosatom Picked to Build Arctic LNG Terminal


The contract is valued at $1.33bn.

by: Joseph Murphy

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Rosatom Picked to Build Arctic LNG Terminal

A subsidiary of Russia's state nuclear firm Rosatom and Moscow-based pipe-laying company Mezhregiontruboprovodstroi (MRTS) have won a contract to build the Utrenny terminal at the Arctic port of Sabetta that will export LNG and condensate from Novatek's Arctic LNG-2 terminal, Rosatom said on July 3.

The contract, valued at rubles 95.7bn ($1.33bn), was awarded by the Russian state, which is overseeing the construction of the terminal. Rosatom unit Hydrographic Enterprise and MRTS will be responsible for dredging the sea floor around the Sabetta port, constructing more than 4.4 km of ice-resistant pipelines and constructing navigation and border checkpoint facilities.

It is only possible to carry out the work during 60-70 days each year, when the waters are ice-free, meaning it is expected to take until 2022 to complete. 

The Arctic LNG-2 project is being developed by Novatek, France's Total, China's CNPC and Cnooc and Japan's Mitsui and Jogmec. It is due to start exporting LNG in 2023 and reach its full capacity of 19.8mn mt/yr around three years later.