Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) and Japan Oil, Gas and Metals National Corporation ("JOGMEC", Head Office: Tokyo, Chairman and CEO: Tetsuhiro Hosono) have made a final investment decision ("FID") on the Arctic LNG 2 Project (the "Project"), in which Mitsui and JOGMEC hold a 10% stake through jointly owned Dutch company Japan Arctic LNG B.V. ("J-ARC").
Mitsui and JOGMEC concluded a share purchase agreement with PAO NOVATEK ("NOVATEK"), a leading Russian company engaged in the production and sale of natural gas, on June 29, 2019, to acquire a 10% stake in the project company Arctic LNG 2 LLC through J-ARC, and officially participated in the Project on July 19, 2019, after obtaining the necessary permits and approvals. NOVATEK's share in the Project is 60%. Other partners of the Project are a subsidiary of the French company Total S.A ("Total"), a subsidiary of China National Petroleum Corporation ("CNPC"), and a subsidiary of China National Offshore Oil Corporation Limited ("CNOOC") with a 10% stake each. Mitsui and JOGMEC have closely examined the development plan and the marketing and shipping strategy of the Project with other project partners. As a result, the Project has now reached the FID.
The Project is an integrated upstream and midstream project, with plans to develop a conventional onshore gas field located on the Gydan Peninsula within the Arctic Circle, north of the Russian Federation, and to construct natural gas and liquefaction facilities with a production capacity of 19.8 million tons per year. The Project is slated to commence production of LNG from around 2023 and plans to deliver the LNG mainly to Asia and Europe via the Northern Sea Route.
Through this Project, which possesses abundant natural gas reserves and geographical superiority in terms of access to major LNG demand areas, we will contribute to the stable supply of energy to the world, including Japan.
||Utrenneye gas and condensate field
||Gydan Peninsula, Yamal-Nenets Autonomous District, Russia
Japan Arctic LNG B.V.: 10%
|Production Capacity (Estimated)
||19.8 million tons of LNG/year (three trains with a capacity of 6.6 million tons each)
|Production Commencement (Estimated)
||Train 1: 2023
Train 2: 2024
Train 3: 2026