Russian independent Novatek has been granted a significant regulatory approval for its Arctic LNG 2 export project, writes Vladimir Afanasiev.

The Glavgosexpertiza state expert review board approved the Novatek proposal to build a permanent marine terminal on the shore of Ob Bay for the liquefied natural gas project.

Glavgosexpertiza said that in the initial phase, the government will manage the construction of navigation channels and supporting infrastructure for the terminal, known under the name of Utrenny.

Works under this phase will be financed from the budget, with funds already waiting to be disbursed according to a special resolution signed by Russian President Vladimir Putin in February.

During the following phase, Novatek will invest its own funds to build the terminal and facilities.

In addition to LNG shipments, the terminal will be able to handle all other cargoes due to arrive at the Gydan Peninsula to support the development of the Utrenneye gas and condensate field, also known as Salmanovskoye, which will feed the LNG project.

The Arctic LNG 2 project is set to involve three liquefaction trains, each with a capacity of 6.6 million tonnes per annum of LNG, with the first expected to be commissioned in 2023.

Last week, Novatek formalised deals with China National Petroleum Corporation and CNOOC Ltd, each of which have agreed to buy 10% stakes in Arctic LNG 2.

The Chinese giants join France's Total, which also holds a 10% interest, as partners in the project.

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Novatek gains key nod for Arctic LNG 2 plans