Page 14 - FSUOGM Week 44 2019

FSUOGM PROJECTS & COMPANIES FSUOGM
US tech firms to support Russia’s Baltic chemical hub
RUSSIA
RusGazDobycha is securing technology for ethylene and polyethylene production.
A pair of US tech firms have been hired to pro- vide technology for a new gas chemical complex in north-west Russia.
Private Russian developer RusGazDobycha intends to construct a plant in the Baltic port of Ust-Luga capable of producing 3mn tonnes per year (tpy) of ethylene and polyethylene. It is due to start production in 2023 and reach full capac- ity within two years.
RusGazDobycha announced on November 1 it had struck a deal to license ethylene produc- tion and separation technology from Lummus Technology, a subsidiary of Texas-based McDer- mott International. McDermott, which is strug- gling with debt having posted four consecutive quarterly losses, is currently seeking a buyer for Lummus.
Another US firm, Univation Technologies, has also agreed to license out its polyethylene technology, RusGazDobycha said.
The gas chemical plant will source its ethane feedstock from a gas processing and liquefaction complex RusGazDobycha is implementing with state-owned Gazprom. The latter project, which
will process up to 45bn cubic metres of gas and produce 13mn tonnes of LNG, 4mn tonnes of ethane and more than 2.2mn tonnes of LPG annually, is also anticipated to come online in 2023.
The cost of the chemical project has not been disclosed. But RusGazDobycha has valued a front-end engineering design (FEED) and engi- neering, procurement and construction (EPC) contract it recently awarded to China National Chemical Engineering for its development at €12bn ($13.2bn).
RusGazDobycha and Gazprom also need to obtain technology for the $11bn processing and liquefaction plant. Royal Dutch Shell was pre- viously expected to serve as a tech partner, but withdrew from the venture in April after Gaz- prom made changes to its scope and brought on board RusGazDobycha, a company linked with sanctioned Kremlin ally Arkady Rotenberg. Germany’s Linde could replace the Anglo-Dutch major, having signed a joint venture deal with Gazprom in October to design processing and liquefaction facilities. ™
RUSSIA
Gazprom Neft
reaches milestone at
Kuyumbinskoye field
The Kuyumbinskoye oilfield in the Krasnoyarsk region of Eastern Siberia has produced 2mn tonnes of oil since its first facilities were launched in December last year, according to one of its operators Gazprom Neft. There are currently 78 production wells at the project, which is operated by Gazprom Neft’s joint venture with Rosneft, Slavneft.
October 29 2019
Russia could increase number of LNG exporters
Russia’s Ministry of Economic Development suggested increasing the number of companies eligible to export liquefied natural gas (LNG) in order to
NEWS IN BRIEF
increase investment appeal of Arctic extraction, RBC business portal reported on October 30 citing the copy of the ministry’s proposal.
Currently only Gazprom, Rosneft, and Novatek have the right to export LNG
from Russia. Novatek’s valuation soared
and it became one of Russia’s most valuable companies after it was granted permission to develop LNG projects.
Increasing the number of LNG exporters would further undermine the pipeline exports monopoly of Gazprom. The gas giant already cried foul in the past arguing that LNG exports threaten its market position in Europe.
Reportedly, the ministry proposes amending the gas exports law and allow residents of the Arctic hydrocarbon cluster to export LNG. This could potentially allow Lukoil private oil major to export LNG from its Obskaya project, unnamed sources told RBC. Other potential exporter could be the Pechora LNG of Altek of Dmitry Bosov on the Korovinsk and Kumzhinsk fields in the Nenets region.
LNG is Gazprom’s weak spot, as the company operates only one LNG plant in
Sakhalin and is facing delays in the planned Baltic LNG project after the recent pull-out by Royal Dutch Shell. In the meantime, Novatek has almost caught up with state oil and gas majors in terms of capitalisation after adopting and successfully carrying out an ambitious LNG strategy.
“The LNG gas would be delivered to Europe via the Northern Sea Route, which is the traditional Gazprom’s market, while the LNG producers will be exempt from MET and other taxes for 12 years, and as a result the state will lose,” unnamed representative of Gazprom told RBC.
bne IntelliNews, October 30 2019
Gazprom asks to use foreign ships in the Arctic
Russian state gas giant Gazprom asked the government to allow it to use foreign vessels on the Arctic shelf should domestic analogues not be available, RBC business portal reported on October 30 citing a letter of the company to the Ministry of Energy.
The limitation on the use of foreign
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Week 44 06•November•2019