The next Arctic frontier for LNG

Following on the heels of the Yamal LNG project, which successfully started production in 2017, Novatek has begun work on a new venture: the Arctic LNG-2 project. Located on Russia’s Gydan Peninsula, the project has an estimated production capacity of 19.8 million tons of liquefied natural gas (LNG) annually, and will unlock over 7 billion barrels of oil equivalent. Following start-up, the Arctic LNG-2 will provide LNG to Western Europe throughout the year, and to Asia during the summer and fall.

The assets behind Arctic LNG-2

Producing LNG in the Arctic and transporting it safely across the region requires a specialized fleet of ice-prepared vessels. Based on a gravity-based terminal structure, Arctic LNG-2 will be supported by 21 LNG carriers and two floating storage units (FSU). Fifteen of these LNG carriers will be built by Russian shipyard Zvezda, with steel-cutting already begun on the first three vessels. The remaining six LNG carriers will be built by Korean shipyard DSME, as will the two other FSUs, which will be based in Murmansk and on Russia’s Kamchatka Peninsula.

These units represent several new firsts for Arctic LNG ventures. Firstly, the ships being built for the Arctic LNG-2 project will be the first Polar Class LNG carriers with Mark III systems onboard. Secondly, the FSUs being developed for the project will have a unitary capacity of 360,000 m³, making them the largest LNG floating tanks on earth.

Development of the first vessels began in 2020, with delivery of the two FSUs expected in August and November 2022, respectively, and delivery of the first five LNG carriers expected in 2023. Production at Arctic LNG-2 is expected to start in 2024 or 2025.

Deploying Arctic LNG expertise

Following our successful work on the Yamal LNG project, Bureau Veritas was chosen to provide dual classification[1] for the Arctic LNG-2 vessels and FSUs. Thanks to our LNG expertise and history of supporting LNG innovations – including classing the world’s largest FSRU – Bureau Veritas is uniquely positioned to support this project. Working collaboratively with key shipyards and owners, our experts take a rigorous approach to providing risk assessments and classing these complex, Arctic-going LNG carriers. At the same time, we are highly attuned to our clients’ evolving needs, helping stakeholders innovate while remaining compliant with the relevant regulatory framework.

[1] Dual classification will be provided by Bureau Veritas and the Russian Maritime Register of Shipping