Russia's Novatek plans condensate processing complex in Murmansk
Russian energy company Novatek plans to build a complex in Murmansk to process and ship stable gas condensate, according to company documents.
The plans suggest the company is likely to proceed with liquefied natural gas (LNG) projects such as Arctic LNG-2 despite U.S. sanctions over the war in Ukraine.
Gas condensate, a type of light oil, is a byproduct from gas projects. However, Arctic LNG-2 project has been under U.S. sanctions and unable to sell sea-borne LNG.
Arctic LNG-2 was forecast to produce up to 1.6 metric MMtpy of stable gas condensate, a feedstock for production of fuel such as gasoline among other uses.
Novatek's documents said its proposed new complex with capacity to process 3 MMt (67,000 bpd) of gas condensate will be set up in the Kolsky district of Murmansk region.
A terminal to ship gas condensate will also be built at Murmansk port, with construction to begin in June and completion slated for the end of May 2028.
Novatek also plans to build storage facilities to stockpile naphtha, kerosene and marine fuel at the gas condensate processing complex.
The company already has a gas condensate complex at the Baltic Sea port of Ust-Luga, where stable gas condensate is processed into light and heavy naphtha, jet fuel, marine fuel and gasoil.
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