Page 17 - GLNG Week 22
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Gazprom looks again at Arctic gas project
PROJECTS & RUSSIA’S Gazprom has carried out a study on Texas and North Dakota put an end to this plan.
COMPANIES the development of the giant offshore Shtok- Equinor, then known as Statoil, exited the project
man field in the Arctic – a project it was trying in 2012.
to advance for over a decade before shelving in Gas prices then collapsed in 2014, and the
2013. following year France’s Total withdrew from the
Gazprom’s design unit, Gazprom Proyekti- venture as well. Even before the price crash, Gaz-
rovaniye, said on May 27 it had researched an prom had suggested that Shtokman might be left
adjusted plan to develop the field. It did not dis- for “a future generation.”
close any details about the study. When Gazprom revised its offshore strategy
Shtokman was discovered by Soviet geolo- in 2017, it targeted Shtokman’s launch in 2028.
gists in 1987 some 600 km north-east of Mur- The following year the Russian Energy Ministry
mansk in the Barents Sea, in waters up to 340 forecast an even later date of 2035.
metres deep. It is one of the world’s largest off- Gazprom’s reappraisal of the high-cost pro-
shore gas finds, with Gazprom estimating its size ject is oddly timed. Global gas prices are at their
at 3.9 trillion cubic metres. lowest level in decades as a result of coronavirus
Gazprom partnered up with France’s Total (COVID-19) lockdowns and a glut in global
and Norway’s Equinor to exploit the field in LNG supply. Gazprom has also recently begun
2007, and the group had aimed to take a final pre-investment design and survey work for an
investment decision (FID) on a $15bn develop- even more ambitious plan to lay a second, 50bn
ment plan in 2009 and start production in 2014. cubic metre per year pipeline to China.
The project was to involve the construction of a In its statement, Gazprom Proyektirovaniye
7.5mn tonne per year (tpy) LNG export terminal said it had undertaken an additional pre-invest-
under its first stage. ment study on the construction of a small-sized
The partners struggled to agree on develop- LNG liquefaction plant in Vladivostok. Gaz-
ment terms, however. The harsh operating envi- prom had earlier wanted to build a 14mn tpy
ronment at Shtokman and its remote location export terminal at the Far Eastern port, but it has
also posed obstacles. Another issue was the fact since opted for a much smaller 1.5mn tpy plant.
that some of the field’s gas had been expected to The project will provide bunkering services for
be shipped to US, but the shale gas revolution in mostly Chinese LNG-fuelled ships.
InfraStrata signs deal to develop FLNG
PROJECTS & LONDON-LISTED InfraStrata has entered a decision (FID) on the scheme has not yet
COMPANIES GBP8mn ($9.85mn) deal that could pave the been reached. But InfraStrata has said
way for it to develop the UK’s first floating LNG before that the project would take three to
(FLNG) deal. four years to implement once this milestone
The company said on May 28 it had agreed is cleared.
a terms sheet for a cash-plus-shares acquisition The floating storage and regasification
of Meridian Holdings, which wants to develop unit (FSRU) is due to be sited off from Bar-
the project in Cumbria, northern England. The row-in-Furness, where gas is piped ashore from
seller is Cayman Islands-registered hedge fund fields in Morecambe Bay. The location there-
West Face Long Term Opportunities Global fore is major well suited for connection to the
Master. national gas grid.
In a statement, InfraStrata said the project, InfraStrata says that project is ideally placed
which would import up to 5-6mn tonnes per and will be vital for ensuring the UK’s future gas
year (tpy) of LNG, would cost around GBP350- supply security.
450mn to realise. But Infrastrata estimates that it “As we move towards a more decarbonised
would earn GBP80-100mn in annual revenues economy, natural gas will be the transitional
over its 25-30 life. fuel of choice, with LNG playing the all-impor-
“I am very pleased that we have now signed tant role of balancing natural gas and power
this term sheet, leading to the formal sale and markets by acting as baseload feedstock for
purchase agreement [SPA] over the course of the power generation, on the one hand, and pro-
next couple of months,” InfraStrata CEO John viding peak shaving capabilities on the other,”
Wood said in a statement. Wood said. “The intermittency of power gen-
InfraStrata entered into an exclusivity eration from wind and solar means natural gas
agreement with Meridian in July last year on will continue to be the fuel of choice for at least
taking part in the project. A final investment the next few decades.”
Week 22 05•June•2020 www. NEWSBASE .com P17
