Novatek's Arctic LNG 2 project to cost $500-$750 per T

The cost of Novatek’s proposed Arctic LNG 2 project in northern Russia is in the $500 to $750 a tonne range, the company’s Chief Financial Officer Mark Gyetvay told a conference in London.

He said adapting lessons learnt from Novatek’s first liquefied natural gas (LNG) project, Yamal, has enabled it to reduce costs by about 30%. The LNG trains, or plants, will now be condensed and fitted onto a floating barge, he said.

“I think we’re in that range of $500-750 and I think if we can stick in that range, you’ll see the project moving forward,” he said. A final investment decision for the project was taken last month. (Reporting by Sabina Zawadzki and Ekaterina Kravtsova, editing by Louise Heavens)

 

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