Posted on 01.01.2014 - 07:10 EST in CONTRACT AWARDS by ginamc
Total announces the final investment decision to develop the onshore Yamal LNG project in Russia. Total holds a 20% direct interest in the project which will develop reserves greater than 5 billion barrels of oil equivalent. The Yamal LNG project consists of an LNG plant with a capacity of 16.5 million tons per year (Mt/y) and represents a total capital expenditure of 27 billion dollars, as estimated by the operator.
“The successful sanction of Yamal LNG strengthens Total’s global portfolio to sustain post-2017 production over the next decades and further increases our presence in a high potential region of Russia in terms of gas resources”, said Yves-Louis Darricarrère, President Upstream at Total “Yamal LNG has made tremendous progress in recent months and Total will join forces with Novatek by harnessing all of its expertise and effort to deliver this top-tier LNG project within schedule.”
The project, operated by Yamal LNG JSC, consists of the development of the giant onshore South Tambey gas and condensate field, located on the Yamal peninsula. The project will include three LNG trains of 5.5 Mt/y each, with the first train scheduled to start-up in 2017, LNG storage tanks and harbor infrastructure in the port of Sabetta. The construction of the infrastructure (airport, harbor, camps) is already well advanced with more than 3,000 personnel actively involved on site. In order to transport the LNG to international markets, up to sixteen icebreaking LNG carriers will be used.
Around 70% of the LNG production of the Yamal LNG project has already been sold under long-term oil-linked price contracts, directed mostly to Asia, and the rest to Europe.
Yamal LNG is currently owned by Novatek (80%) and Total (20%). In September 2013, Novatek and China National Petroleum Corporation (CNPC) concluded an agreement whereby CNPC is expected to acquire a 20% equity share in Yamal LNG.