Insight

Can Arctic LNG-2 take FID next year?

23 May 2018

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23 May 2018

Can Arctic LNG-2 take FID next year?

Report summary

Following the successful start-up of Yamal LNG, NOVATEK is focusing on its next giant frontier project – Arctic LNG-2. The company has set a bold target of FID in 2019, but how realistic is it? To achieve this, technical and commercial unknowns need to be addressed: • Will NOVATEK attract strong partners to support the project? • Will it be able to convince investors about Russian suppliers’ ability to deliver technical solutions? • Are there any other hurdles on the way? The upcoming Saint Petersburg International Economic Forum (SPIEF) includes attendees from France, Saudi Arabia and others potential investors. We could see a number of agreements signed which will move the project closer to its FID goal.

Executive summary
- Yamal LNG lays the ground for Arctic LNG-2
- Strong partners needed to support commercial prospects
- Technological unknowns are still to be addressed
- NOVATEK needs to confirm the feasibility of the development concept
- Extent of localisation needs to be understood
- State support – how crucial is it?
- So is Arctic LNG-2 FID in 2019 achievable?