Abstract

Because of the extraordinary amounts of oil and gas reserve in the Arctic, many countries and energy companies have focused on Arctic region and accelerated development speed for Arctic energy in recent years. However, harsh climate, lack of logistic and limited experience would cause numerous challenges during construction and production. This paper studies on and compares with two Arctic LNG plant projects, completed Yamal LNG and under construction Arctic LNG 2, to summarize and illustrate the similarity and difference of energy development model in the Arctic region.

Introduction

With the repaid development of society, more and more energy has been consumed and also to be needed in the future. According to the USGS 2008 report, the prospective oil and gas reserve assess 1.26 billion tons and 4,673 billion cubic meters separately in the Arctic region. Arctic energy exploration and production will become a new focus around the world. However, the harsh Arctic environment such as extreme temperature, severe storm, heavy ice condition, perennial snow covering and prolonged darkness causes a lot of challenges. Meanwhile energy exploration and production will also encounter lack of infrastructure, logistic challenges and short construction weather windows. Besides that, less experience from limited project, especially offshore project experience could be learned from for reference. All issues mentioned above would bring many questions and uncertainty during construction and development.

Through research on recent Arctic gas development project, completed YAMAL LNG and ongoing Arctic LNG 2, this paper studies on different development projects in the Arctic region comparatively from development model, development technology and project execution etc. It is hoped that the lesson and experience summarized from this paper could benefit the future similar project, especially gravity based structure (GBS) platform in the Arctic.

About Arctic

Arctic Circle is defined as the parallel of latitude that is approximately 66°33' north of the Equator. The region north of this circle is known as the Arctic. There are eight countries in the Arctic Circle living about 4 million populations, covered approximate 8 million square kilometer for mainland and 13 million for ocean.

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