Novatek closes in on Arctic LNG 2

FID on Novatek’s second Arctic LNG production project, expected in Q3 2019, appears to be a formality

The rule that a new multi-billion-dollar energy project cannot truly be regarded as under way until its sponsors have reached a final investment decision (FID) does not seem to apply to Novatek's Arctic LNG 2 (ALNG2). FID on the 19.8mn t/yr Russian liquefaction project is not due until Q3 but construction has been underway for months. It is not just the case that a handful of long-lead time items were ordered well in advance to ensure they do not cause unnecessary delays once construction begins-a large chunk of the $20-21bn project cost has already been committed. "More than 75pc of the equipment for the project" has been contracted, says Novatek's deputy chairman, Mark Gyetvay, adding that