Russian hydrocarbon (Oil and Gas and Coal) Industry: News #4

Russia's Novatek on Track to Complete 2nd Train of Arctic LNG 2 in 2024

The final module for the 2nd production line of Russian gas producer Novatek’s Arctic LNG 2 project, departed from China last week. In February the company will integrate the last three modules ahead of towing the LNG train to the Gydan peninsula this summer. While US sanctions have not yet halted construction, it remains to be seen how much LNG Novatek will be able to sell.

In a major step toward completion of the second train - or liquefaction unit - of Russian gas producer Novatek’s Arctic LNG 2 project, the final prefabricated module left a Chinese construction yard bound for Murmansk in the Russian Arctic last week.

A LNG train consists of various components to process, purify, and convert natural gas to liquefied natural gas (LNG).

The module departed from the Penglai Jutal Offshore Engineering (PJOE) yard in Penglai in the Chinese province of Shandong aboard heavy load carrier Hunter Star on 15 January, shipping data and satellite imagery show. Industry sources confirmed to HNN that this shipment concludes module deliveries from China for Train 2.

Earlier in January two modules shipped from the same yard aboard Red Box’s carriers Audax and Pugnax.


Route of Hunter Star (left) and Audax and Pugnax (right) following their departure from the Penglai Jutal Offshore Engineering (PJOE) yard in the Chinese province of Shandong. (Source: Maritime Optima)

Despite a months-long work stoppage by Chinese builders following Western sanctions in 2022, Novatek ultimately managed to secure all modules, including replacing Western turbines with Chinese imports. The modules will now undergo final assembly at the Belokamenka yard outside Murmansk.

The second train could be ready for sail-away this summer. Novatek aims to tow the gravity based structure (GBS) to the Utrenney terminal in Russia in August, explains Ben Seligman, a project specialist for Arctic oil and gas development.

“The main question in my mind would be the status of the LNG membrane storage system within the GBS, given GTT's departure from Russia a year ago,” Seligman cautions.

Gaztransport & Technigaz, or GTT, is a French multinational naval engineering company specializing in membrane containment systems for the transport and storage of liquefied gas.

Significant uncertainty looms
While the delivery of all twelve modules represents a significant step toward completing Train 2, the project’s overall future has become increasingly uncertain following targeted US sanctions. Novatek’s European, Japanese, and Chinese partners have exited the project under force majeure declarations.

The latest round sanctions bar the purchase and transport of LNG from the project. Thus, questions mount who Novatek will sell its LNG to and aboard which vessels it will deliver it. France’s TotalEnergies announced last week that it will not take receipt of any LNG from the project in 2024.

Novatek may try to sell its LNG at a discount on the spot market to buyers in Asia.

“It is possible that prices for sanctioned Russian LNG would be cheaper than for other supplies, but in this case, Chinese importers would have to resell their cargoes from other suppliers and replace them with Russian supply,” explains Jason Feer, global head of business intelligence at Poten & Partners.

“India would be in a similar situation, though they are more price sensitive so discounts on Russian supply may be more attractive."

The project’s future may in part hinge on the ability of Novatek's partners, including China’s state-owned oil major, the China National Offshore Oil Corporation (CNOOC) and China National Petroleum Corp (CNPC), to secure sanction exemptions.

“But China and India may only be able to take Russian cargoes if they can get waivers of sanctions or if ship owners are willing to breach sanctions, which I doubt most are willing to do,” concludes Feer.

Production of LNG at the facility began about 3 weeks ago and storage tanks will reach capacity by the end of January according to industry reporting.

“It remains to be seen how Seapeak, Mitsui O.S.K. Lines (MOL) and Dynagas [operators of the Arc7 LNG carrier fleet. Journ.note] will react once the first cargo is ready to be loaded,” confirms Mehdy Touil, a LNG Operations Specialist, who in the past worked as a senior operator for Novatek’s Yamal project.

The ongoing expansion of the Russia-Ukraine War to include targeting Russian oil and gas infrastructure, including Novatek’s massive Ust-Luga fuel export complex over the weekend, could also complicate the future of the company’s Yamal LNG and Arctic LNG 2 projects.

A dozen shipments across 15 months
The departure of Hunter Star concludes a 15 months effort to transport a dozen modules to Murmansk in the face of a growing sanction regime. The first modules for Train 2 departed from Bomesc Offshore Engineering in China in October 2022, followed by additional shipments throughout the summer and fall of 2023.

In contrast, the delivery of fourteen modules for Train 1 – all constructed and delivered prior to sanctions in 2022 – took only seven months, from August 2021 until February 2022.


Image showing the twelve heavy load carriers that carried modules for Arctic LNG 2. (Photos by Kees Torn, Berg Knot, and Piet Sinke on Flickr.com under CC BY-SA 2.0 and courtesy of Red Box)

Without ice classification Hunter Star is required to take the long way around to Murmansk, either through the Suez Canal or rounding the Cape of Good Hope, rather than traveling the wintry Northern Sea Route (NSR).

In contrast, their polar ice classes permit Audax and Pugnax to travel through the Arctic, with both ships expected to enter the Northern Sea Route this week.

All three vessels are scheduled to arrive at Belokamenka in February with teams preparing skidding and integration operations for the modules on the gravity based structure, sources at the yard tell HNN.

In total a dozen heavy load carriers participated in the transport of the modules for Train 1 and Train 2, HNN data shows.


Shipments of Modules for Train 1 of Arctic LNG 2 by yard, module number, vessel and date. (Source: Author’s own work)

While several Western shipping companies, including Norwegian GPO and Dutch Boskalis, ceased transporting cargo following sanctions, other operators, such as Chinese COSCO and Dutch-Singaporean Red Box, continue lifting modules.


Shipments of Modules for Train 2 of Arctic LNG 2 by yard, module number, vessel and date. (Source: Author’s own work)

And Novatek will likely continue to rely on their services. This year may see the transport of initial modules for the final production line of Arctic LNG 2. The first four modules for Train 3 are nearing completion, satellite imagery shows.

Originally Novatek had planned to construct all fourteen modules for the final train on site at the Novatek Murmansk Plant, but project documents show that at least four modules will now originate in China.


Modules TMR-001 through TMR-004 for Train 3 of Arctic LNG 2 at the Wison yard on 16 January 2024. (Source: Planet.com)

Modules from five yards across China
The construction of Arctic LNG 2 modules – each the size of half a soccer pitch and weighing up to 14,000 tons – is carried out across five yards in China. Each train, or production line, consists of fourteen modules, a Novatek diagram shows.


Diagram showing the arrangement of the fourteen modules on the GBS. (Source: Novatek pre-commissioning, commissioning & start-up execution plan)

After arriving at Belokamenka modules are skidded onto a gravity-based structure and integrated to form the production line. Satellite images of the construction yard illustrate the final assembly of the fourteen modules into Train 1.


Annotated satellite image of Train 1 of Arctic LNG 2 showing each of the fourteen modules June 2023. (Source: Airbus)

For Train 1 all fourteen modules were constructed across China, for Train 2 two modules are produced locally at Belokamenka, with a dozen modules originating in China.

Novatek documents outline the distribution of modules across five Chinese yards.

Bomesc Offshore Engineering was awarded the largest construction contracts for module design and construction with a total contract value of over 6 billion Yuan (US$840m), across three contracts originating in July and November 2019 and June 2021. In total Bomesc was contracted to construct six modules, three for Train 1 and three for Train 2.

The contract comprises modules TMP-002, TMP-005, and TMR-005.

Penglai Jutal Offshore Engineering was also contracted for a total of six modules for Trains 1 and 2; though the modules are slightly smaller than those by Bomesc. The three PJOE modules are compressor modules TMS-003 and TMS-004 and power generation module TMS-005.


Details on module fabrication in China. (Source: Novatek pre-commissioning, commissioning & start-up execution plan)

Wison Offshore Engineering Module Development was contracted to manufacture eight modules, four for each train. The four pipe rack modules (TMR-001 to TMR-004) represent the core of each train and were thus the first modules to be shipped for Train 1 in August and September 2021.

Qingdao McDermott Wuchuan Module Development was contracted to construct three liquefaction modules for the project, with two modules bound for Train 1 and the third bound for Train 2. It constructed modules TMP-003 and TMP-004 for Train 1 and TMP-003 for Train 2.

Cosco (Qidong) Offshore Company constructed a total of three modules for Train 1 and Train 2. These include modules TMS-001 and TMP-001.


Modules TMS-003 to TMS-005 for Train 1 at the PJOE yard. (Source PJOE)

Redesigning the final module
Following Western sanctions Novatek was forced to redesign module 1-TMS-005, which houses the power supply.

A key challenge was the lack of LM9000 gas turbines by supplier Baker Hughes. The American company delivered four out of seven turbines before sanctions kicked in.

As a result Novatek was forced to modify the configuration of Train 1 and completely redesign Train 2.

Satellite images throughout 2023 and from the loading of Hunter Star indicate that work on the original TMS-005 module for Train 2 was abandoned and instead a new module, likely a modified version of TMS-005 to accommodate the Chinese electric motors, was constructed between May 2023 and January 2024.

The original TMS-005 for Train 2 currently remains at the PJOE yard, while Hunter Star loaded the apparent replacement module.


PJOE yard on 14 January 2024 showing loading of the new TMS-005 module under way. (Source: Planet.com)

“There have been various modifications on TMS-003/4/5 to accommodate the electric motors and remove all the piping accessories related to the canceled LM9000s,” confirms an industry source familiar with developments at the Belokamenka yard.

The startup of Train 1 and the likely completion of Train 2 in 2024 indicate that thus far Novatek has been able to overcome the logistical and engineering challenges created by expanding US sanctions.

However, the question remains at which point the costs associated with repeatedly re-designing and re-engineering different aspects of the project become too great for Novatek to continue pushing ahead.

owais.usmani wrote:“The main question in my mind would be the status of the LNG membrane storage system within the GBS, given GTT's departure from Russia a year ago,” Seligman cautions.
...
the project’s overall future has become increasingly uncertain following targeted US sanctions. Novatek’s European, Japanese, and Chinese partners have exited the project under force majeure declarations.

The latest round sanctions bar the purchase and transport of LNG from the project. Thus, questions mount who Novatek will sell its LNG to and aboard which vessels it will deliver it. France’s TotalEnergies announced last week that it will not take receipt of any LNG from the project in 2024.

Novatek may try to sell its LNG at a discount on the spot market to buyers in Asia.

“It is possible that prices for sanctioned Russian LNG would be cheaper than for other supplies, but in this case, Chinese importers would have to resell their cargoes from other suppliers and replace them with Russian supply,” explains Jason Feer, global head of business intelligence at Poten & Partners.

“India would be in a similar situation, though they are more price sensitive so discounts on Russian supply may be more attractive."

The project’s future may in part hinge on the ability of Novatek's partners, including China’s state-owned oil major, the China National Offshore Oil Corporation (CNOOC) and China National Petroleum Corp (CNPC), to secure sanction exemptions.

“But China and India may only be able to take Russian cargoes if they can get waivers of sanctions or if ship owners are willing to breach sanctions, which I doubt most are willing to do,” concludes Feer.

Production of LNG at the facility began about 3 weeks ago and storage tanks will reach capacity by the end of January according to industry reporting.

“It remains to be seen how Seapeak, Mitsui O.S.K. Lines (MOL) and Dynagas [operators of the Arc7 LNG carrier fleet. Journ.note] will react once the first cargo is ready to be loaded,” confirms Mehdy Touil, a LNG Operations Specialist, who in the past worked as a senior operator for Novatek’s Yamal project.

Gazprom delivering 42 mln cubic meters of gas to Europe through Ukraine via Sudzha
The volume stood at 42.4 mln cubic meters on January 24

MOSCOW, February 25. /TASS/. The volume of Russian gas supplies to Europe through Ukraine is 42 mln cubic meters per day, a Gazprom spokesman told reporters.

"Gazprom continues to supply Russian gas for transit through Ukrainian territory via the Sudzha gas pumping station in an amount approved by Ukraine. The volume is 42 mln cubic meters for February 25. A request for transit via the Sokhranovka gas pumping station was rejected," he said.

The volume stood at 42.4 mln cubic meters on January 24.

The transit line through Ukraine remains the only route for Russian gas supplies to western and central European countries. Pumping through the Nord Stream pipeline was completely suspended. Gas supplies via Turkish Stream and Blue Stream are intended for Turkey and southern and southeastern European countries.

In May 2022, the Gas Transmission System Operator of Ukraine said it would suspend the flow of gas to Europe via the Sokhranovka transit point due to force majeure as the company allegedly was unable to control the Novopskov gas compressor station in the Lugansk People’s Republic. However, the Russian gas giant did not see any proof of force majeure.

In the fall of 2022, Ukraine’s Naftogaz company filed a petition for arbitration with the International Arbitration Court against Gazprom for allegedly being late with its payment for gas transportation services through Ukraine. Gazprom CEO Alexey Miller stated that the Russian company considered Naftogaz’s arbitration to be illegitimate. Meanwhile, Russia may impose sanctions against Naftogaz in the event of further unfair actions by the Ukrainian company and any relations with Naftogaz will be impossible.

https://tass.com/economy/1751209

Why is Russia funding Ukraine through gas transit revenues anyway? And sending cheap energy to someone who's supplying a combatant against them with weapons and huge monetary aid. This is just bonkers.

22 Mar 2024
Gazprom starts 5,000-km Eastern Gas Supply System project

MOSCOW. March 22 (Interfax) - Gazprom is beginning to implement the huge project to build the Eastern Gas Supply System (EGSS), which will stretch over more than 5,000 km.

The EGSS project was brought up for discussion by the Russian gas giant's management board for the first time on Thursday, and the report will subsequently be presented to the company's board of directors.

"The main purpose of the project is to develop the Eastern Gas Supply System of the Russian Federation in regions of Eastern Siberia and the Far East," the government said in the updated national territorial planning scheme in the area of federal transport (as regards pipeline transport), which now includes this project.

The project calls for the comprehensive development of gas transport capacity in Eastern Russia and its subsequent connection with gas infrastructure in the western part of the country, Gazprom said in a press release.

"This will ensure additional reliability and flexibility of gas supplies to domestic consumers and open up new opportunities to develop the gasification of regions in Siberia and the Far East," the company said.

President Vladimir Putin earlier issued orders to bring piped natural gas service to regions that did not previously have access to it, including Krasnoyarsk Territory and the Jewish Autonomous Region.

The EGSS will run from the northern part of the Yamal Peninsula in the Arctic to Khabarovsk Territory in Russia's Far East and will have design capacity to carry 28.5 billion cubic meters of gas per year, according to the territorial planning scheme.

Siberian line

The gas transport corridor begins on the Yamal Peninsula, in the Yamalsky district of the Yamalo-Nenets Autonomous District, and runs through the Nadymsky and Purovsky districts and Noyabrsk. In the Khanty Mansi Autonomous District, it crosses the Surgutsky district, Kogalym and Nizhnevartovsky district, and in Tomsk Region it runs from the Alexandrovsky to the Zyryansky district. Gas pipelines have already been laid from the central districts of Yamalo-Nenets to Tomsk Region, which here the project will involve expanding the gas transport system.

In the Kuznetsk Basin, the planned pipeline only crosses the Mariinsky municipal district. In Krasnoyarsk Territory, pipeline has been laid from the Bolsheuluisky to the Nizhneingashsky district, and in the Yemelyanovsky district, approaching Krasnoyarsk, near the village of Pamyati 13 Bortsov.

The government press service said a month ago after a meeting between Deputy Prime Minister Alexander Novak and Krasnoyarsk Governor Mikhail Kotyukov that Gazprom was conducting design and survey work on the gas pipeline section to Krasnoyarsk.

In Irkutsk Region, the pipeline runs from the Taishetsky district to the outskirts of Irkutsk (Usolsky and Slyudyansky districts). Gazprom's Kovykta field, the starting point of the Power of Siberia gas pipeline, is also located in Irkutsk Region.

Eastern line

Another part of the EGSS is a connector between the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok pipelines that will run across Amur Region (Seryshevsky-Arkharinsky districts), the Jewish Autonomous Region (Obluchensky, Birobidzhansky and Smidovichsky districts) and Khabarovsk Territory (Amursky, Nanaisky and Khabarovsky districts).

In an article in the Energy Policy journal in January, Novak called this section one of the first stages of the EGSS.

"The gradual implementation of the System of Trunk Gas Pipelines Eastern Gas Supply System project, in the first stage of which there are plans to connect the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok trunk pipelines, has begun, and the subsequent stages call for the construction of the Power of Siberia 2 trunk gas pipeline," Novak said.

"Design and survey work is now underway for the construction of the Belogorsk-Khabarovsk gas pipeline stretching about 830 km from the Amur Gas Processing Plant to the tie-in to the system of the Sakhalin-Khabarovsk-Vladivostok trunk gas pipeline near Khabarovsk. Completion of construction is planned for 2029," Novak said at the time.

This connector will essentially link the Yakutsk and Sakhalin gas production centers, increasing the reliability of gas supplies for the whole region. Gazprom's Chayanda field, the foundation of the Yakutsk production center, is expected to reach full design capacity in 2024.

Gazprom, meanwhile, has also announced the start of the first phase of the project, involving the connection of the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok pipelines. "Construction of the Belogorsk-Khabarovsk section of the Eastern Gas Supply System began in 2024 for this purpose," Gazprom said. Design and survey work is also underway on other sections of the system.

Technology

Gazprom might use innovative pipes intended for a higher operating pressure of 150 atmospheres (14.7 Mpa) made from higher strength steel to build the new pipeline system. All Russian pipe plants have the competency to manufacture new-generation large-diameter pipes from K70 steel.

Using pipes that can handle higher pressure will make it possible to build pumping stations further apart, which will reduce the cost of the project.

https://interfax.com/newsroom/top-stories/100656/

Exclusive: India's Reliance to buy Russian oil in roubles, sources say

NEW DELHI, May 28 (Reuters) - India's Reliance Industries (RELI.NS), opens new tab, operator of the world's biggest refining complex, has signed a one-year deal with Russia's Rosneft to buy at least 3 million barrels of oil a month in roubles, four sources aware of the matter told Reuters.
The shift to rouble payments follows Russian President Vladimir Putin's push for Moscow and its trading partners to find alternatives to the Western financial system to facilitate trade despite U.S. and European sanctions.

A term deal with Rosneft also helps privately run Reliance to secure oil at discounted rates at a time when the OPEC+ group of oil producers is expected to extend voluntary supply cuts beyond June.
The OPEC+ group comprising the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia is due to discuss the output cuts in an online meeting on June 2.
India, the world's third-biggest oil importer and consumer, has become the biggest buyer of seaborne Russian crude since the West halted purchases and imposed sanctions against Moscow in the aftermath of Russia's 2022 invasion of Ukraine. India has also paid for Russian crude in rupees, dirhams and Chinese yuan.

State-owned Indian refiners, meanwhile, have been tapping spot markets for Russian oil because they were unable to finalise term supplies for this year, Reuters has reported previously.
"India is a strategic partner for Rosneft oil company," the Russian company said in an emailed response to questions from Reuters, adding that it does not comment on confidential agreements with partners.
"Cooperation with Indian companies includes projects in the field of production, oil refining and trading of oil and petroleum products."

Rosneft also said that commercial approaches to determining the value of sold crude are the same for all companies, regardless of whether they are private or state-controlled.
Reliance did not respond to a request for comment.
Under the terms of the deal, which took effect at the beginning of the Indian financial year from April 1, Reliance will buy two cargoes of about one million barrels of Urals crude with an option to buy four more each month at a discount of $3 a barrel to the Middle East Dubai benchmark, the sources said.

Industrial production of hydrocarbons has begun in section 3A of the Achimov deposits of the Urengoy field

Today in the Yamalo-Nenets Autonomous Okrug (Yamalo-Nenets Autonomous Okrug) industrial production of natural gas and gas condensate began in section 3A of the Achimov depositsUrengoyskoye field.

The start of the work of the production complex was given by the Chairman of the Management Board of PJSC GazpromAlexey Millerand Chairman of the BoardPJSC Gazprom NeftAlexander Dyukov.

The Urengoy field is one of the largest in the world in terms of initial hydrocarbon reserves. Located in the Nadym-Pur-Taz region of the Yamal-Nenets Autonomous Okrug, a traditional hydrocarbon production region in Russia. Gas production at the field began in 1978.

Gazprom is conducting full-scale development of the field. To ensure the most efficient development of its reserves, the company is consistently involving in development the Achimov deposits, which are deeper than the traditional Cenomanian and Valanginian deposits.

The Achimov deposits of the Urengoy field are located at a depth of about 3400–3800 m at an abnormally high reservoir pressure (more than 600 atmospheres). They are also distinguished by their complex geological structure and low rock permeability. Advanced technologies are required to develop such deposits.

The operator of the development of section 3A of the Achimov deposits of the Urengoy field is Gazprom Neft. To work on the project, the company, using a Russian software package, created a three-dimensional geological model of the field site. A pilot industrial work program was formed. Based on their results, effective drilling and production technologies were selected - using wells with an industry-record length of horizontal sections (up to 1800 m) and the method of multi-stage hydraulic fracturing. More than 100 options for developing the site were calculated and the optimal option for combining it with the existing infrastructure of the field operated byGazprom Dobycha Urengoy.

Pilot work was carried out using mobile separation units and a condensate stabilization unit. This made it possible to extract hydrocarbons for processing and delivery to consumers even before the start of industrial exploitation of the field site.

Complex technological equipment for the development was delivered immediately in a block-modular design - in maximum factory readiness. This made it possible to reduce installation time and implement the project in a short time - in just three years.

The main production complex includes over 100 production and auxiliary facilities for the reception, preparation and shipment of hydrocarbons. Key facilities are gas pre-treatment and condensate stabilization units. All main equipment was produced at Russian enterprises.

Annual production at section 3A of the Urengoy field will amount to 5 billion cubic meters. m of gas and 1.5 million tons of gas condensate.

The produced gas is intended for supply to the Unified Gas Supply System of Russia. Stable gas condensate enters the Urengoyskaya oil pumping station and then into the Urengoy - Pur-Pe oil and condensate pipeline. Unstable gas condensate is sent to the Urengoy condensate preparation plant for transport, and a wide fraction of light hydrocarbons is sent to the Surgut condensate stabilization plantGazprom Pererabotki.

“Working with deep deposits allows us to obtain additional volumes of hydrocarbons. This is natural gas for supply to consumers in Russia. These are liquid hydrocarbons, which are valuable raw materials for petrochemicals and oil refining. Thanks to such high-tech projects as section 3A of the Urengoy field, we, together with you, are fulfilling our task of responsible and rational development of the resources of the Yamalo-Nenets Autonomous Okrug. And most importantly, we ensure the country’s energy security and its technological sovereignty,” said Alexey Miller.

“We began full-scale production at section 3A of the Urengoy field much earlier than standard industry deadlines for such projects. The key to the Achimov deposits of the field was innovative engineering and digital solutions, as well as Gazprom Neft’s competence in developing complex reserves. During the implementation of this project, we gained new valuable experience and understanding of the geological features of the region. This will help us when working with other Achimov deposits in Western Siberia,” said Alexander Dyukov.

NOVATEK sent its specialists to the Zvezda Shipbuilding Complex for the completion of 2 gas tankers of the Arctic LNG-2 project

Moscow, May 29 - Neftegaz.RU news agency. NOVATEK sent its engineers and installation workers to the Zvezda Shipbuilding Complex to help complete the construction of the Arc7 ice-class gas tanker to export liquefied natural gas ( LNG ) from the Arctic LNG-2 project. Kommersant
reported this on May 29, 2024, citing sources familiar with the situation.

NOVATEK's labor landing on Zvezda

According to the publication:

• NOVATEK sent about 200 engineers and installation workers to the Zvezda Shipyard, mainly from the Arctic LNG-2 project, to help complete the construction of Arc7 ice-class gas tankers.
  
• specialists were sent to the shipyard more than a month ago due to an acute shortage of labor at the construction site,
  
• Probably, NOVATEK employees will help with electrical installation and commissioning work, welding work has already been completed,
  
• the first 2 gas tankers are fully equipped with cryogenic equipment, which makes it possible to complete their construction and put them into operation (the French Gaztransport & Technigaz (GTT) managed to equip these tankers with Mark III membrane-type LNG storage systems before leaving Russia, the way to equip the next gas carriers is still not clear)
  
• delivery of the first 2 tankers is tentatively expected at the end of 2024 and beginning of 2025. respectively.
  
• The fact that the gas tanker Alexey Kosygin could be transferred for operation in 2024 was said in March 2024 by the Chairman of VEB.RF I. Shuvalov, who visited the Zvezda Shipbuilding Complex.
  
• Now Kommersant clarifies that this will happen at the end of 2024.
  
• At the beginning of 2025, NOVATEK may receive the gas tanker Petr Stolypin, but the prospects for the next tankers are unknown.
  

Arctic LNG-2 and its tankers

The Arctic LNG-2 LNG plant will include 3 technological lines with a total capacity of 19.8 million tons/year of LNG (6.6 million tons/year each) and 1.6 million tons/year of stable gas condensate. Line
1 of the Arctic LNG-2 project began production in December 2023, but LNG shipments have not yet begun due to the lack of gas tankers and US blocking sanctions introduced in November 2023 . With the help of 2 gas tankers, it will be possible to ensure the export of about 2 million tons of LNG from Arctic LNG-2. To export LNG from Arctic LNG-2, NOVATEK contracted 21 Arc7 ice-class gas tankers:

• SSK Zvezda was supposed to build 15 gas tankers,
  
• South Korean Hanwha Ocean (formerly DSME) - 6 vessels.
  
• The delivery of vessels and their use for LNG supplies is hampered by numerous US sanctions, which apply not only against Arctic LNG-2, but also:
  SSK Zvezda, which builds gas tankers,
  
• Sovcomflot ( SKF ), which will operate the lead tanker being built at SSK Zvezda (i.e. Alexey Kosygin),
  
• Smart LNG, a joint venture of SCF and NOVATEK, under long-term time charter agreements with Arctic LNG-2 which will operate the remaining 14 gas carriers being built at SSC Zvezda,
  
• 3 SKF subsidiaries - Azoria Shipping Company Ltd., Elixon Shipping Company Ltd. and Gloria Shipping Company Ltd., which were to purchase 3 of the 6 vessels built at Hanwha Ocean under former SCF contracts.
  

"Star" tankers

SSK Zvezda was already supposed to deliver the first 5 gas tankers out of 15 to NOVATEK, but their delivery dates were pushed back several times .
In September 2023, the naming ceremony of the gas tanker Alexey Kosygin took place
at the shipyard. Then it was reported that 3 gas tankers were launched for the Arctic LNG-2 project - Alexey Kosygin, Pyotr Stolypin and Sergey Witte, but the degree of their readiness is unknown.
In February 2022, SSK Zvezda reported that by that time metal cutting had begun for the 7th vessel , and keels had been laid for 3 gas tankers (it was they who were launched).
By the time of the visit of Russian President V. Putin in September 2023, the hulls of two more gas tankers, Konstantin Posyet and Viktor Chernomyrdin, were being formed in the dry dock.
In March 2024, Chairman of VEB.RF I. Shuvalov visited the Primorsky Territory, visiting, among other things, SSK Zvezda, where he was assured that the first 5 gas carriers would be put into operation as quickly as possible.

Tankers on Hanwha Ocean

Problems also arose with the 6 gas tankers under construction at Hanwha Ocean.
Gas tankers Pyotr Kapitsa, Lev Landau and Zhores Alferov have been built, but their transfer is hampered by US sanctions. Initially, these ships were built by order of SCF, but Hanwha Ocean terminated
the contract in 2022 due to difficulties with payments. The head of NOVATEK L. Mikhelson said that the contract was being transferred to another shipowner, who remained unknown until February 2024. From the February package of US sanctions it follows that the tankers were built by order of the Cypriot Elixon Shipping, Azoria Shipping and Glorina Shipping, the US Ministry of Finance called them subsidiaries of SCF and included it in the SDN-List. It is noteworthy that on February 1, 2024, they tried to transfer the tanker Petr Kapitsa to the Emirati New Transshipment FZE, but 2 weeks later the re-registration was canceled, and this happened 9 days before the United States imposed blocking sanctions against the previous owner of the vessel, Elixon Shipping. Another 3 tankers - Ilya Mechnikov, Nikolay Semenov and Nikolay Basov - are being built at Hanwha Ocean by order of the Japanese Mitsui OSK Lines (MOL). Previously, MOL complained that delivery was delayed due to a lack of labor at the shipyard, but now Ilya Mechnikov is almost ready. These tankers were not subject to sanctions restrictions, so they can be transferred to the customer, but what MOL will do with them and whether they will be transferred to NOVATEK is not yet clear.