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Tenders and Contracts
The main tenders have been completed and key contracts signed as a part of the project implementation. In particular, the EPC contract has been awarded to the joint venture of Technip, JGC and Chiyoda. A slot reservation agreement was signed with Daewoo Shipbuilding & Marine Engineering Company for the construction of up to 15 ARC7 ice-class LNG carriers.
In August 2017 the first Arc7 ice-class LNG tanker “Christophe de Margerie” has entered the Kara Sea and has started its first LNG cargo voyage through the Northern Sea Route. In November 2018, NOVATEK shipped its first cargo to China National Offshore Oil Corporation, or CNOOC, via the Northern Sea Route (NSR) by an Arc7 ice-class LNG carrier in 20 days, completing the NSR part of the journey in 7.5 days.
Long-term contracts for 95% of LNG volumes have been placed. Regular LNG sales according to the long-term contracts commenced in April 2018. All LNG sales prior to that date was sold on a spot basis.
Operation of material offloading berths in the port of Sabetta began, which enabled to open first winter navigation in October 2013 and ensure year-round supplies of construction cargos.
In 2015, dredging was performed in the port harbor, approach and sea channels. Overall volumes of dredged sand totalled more than 16 million cubic meters. The year-round use of the Sabetta port received more than three (3) million tons of cargoes (up to 50% year-on-year), delivered by 190 marine ships and 317 river barges. A two (2) km Southeastern ice barrier was being constructed to protect the port harbor. LNG and stable gas condensate shipment pipe rack was being built at the ice barrier.
The first cargo loading commenced on 8 December 2017 at the Sabetta port using the first Arc7 ice-class LNG tanker. In 2018 113 LNG shipments were dispatched for a total volume of 8.36 million tons, along with 30 shipments of stable gas condensate representing more than 717 thousand tons.
The plant's first module was delivered to the site in September 2015, and delivery of other long-lead items also started during the past year.
By the end of 2016 year, over 20,000 foundation piles for the LNG plant were installed, over 2,000 pile caps were installed on the piles, and more than 17,000 cubic meters of concrete was poured for the foundation. Compressor equipment for the first train, seven (7) modules and the backup heater were installed on the prepared concrete foundations, as well as over 6,000 tons of steel work pipe racks. The construction of a power plant with a rated capacity of 376 MW was underway: four (4) gas turbine units with a capacity of 47 MW each were installed on the concrete foundations. The outer concrete walls were completed as well as the installation of the roof on the project’s four (4) LNG tanks, and the work on installing the internal multi-layer walls was underway.
The first LNG train launched in December 2017. During the official loading ceremony in Sabetta on the 8th December, Russian President Vladimir Putin gave the formal command to start loading LNG onto the Arc7 ice-class tanker “Christophe de Margerie”, owned and operated by Sovcomflot. Yamal LNG begins shipments from the second LNG train in August 2018. Yamal LNG commenced third LNG train production on November 2018. Train 4 is under construction, at the end of 1Q20 progress is estimated at about 79%.
The main construction phase is now completed.
Airport Sabetta serves regular flights from Moscow, Samara and Novy Urengoy from February 2015.