Economy
NOVATEK says it can reduce Arctic LNG-2 construction costs by 30 percent
© RIA Novosti. Alexander Astafyev

NOVATEK says it can reduce Arctic LNG-2 construction costs by 30 percent

NOVATEK claims it can cut construction costs for the Arctic LNG-2 liquefied natural gas plant by 30 percent compared to the $27 billion it took to build the Yamal LNG plant, a similar corporate project, the company CEO, Leonid Mikhelson, told Russian Prime Minister Dmitry Medvedev, TASS reports. 

"We are prepared to cut Arctic LNG-2 construction costs by at least 30 percent," he said.

Arctic LNG-2 is the company's second liquefied gas production project after Yamal LNG. Corporate executives are studying the possibility of building a new LNG plant on the Gydan Peninsula, with the Utrenneye oil and gas condensate deposit providing the gas. The company intends to make an investment decision in 2019, and the first stage of the Arctic LNG-2 plant is to be launched in late 2022 or early 2023.