Page 12 - GLNG Week 21 2021

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Gazprom starts work on

$13bn Baltic gas complex

PROJECTS & RUSSIA’S Gazprom has formally started con- Advanced processing is the most efficient way to
COMPANIES struction on a major gas processing and LNG maximise the potential of the immense reserves
complex at the Baltic Sea port of Ust-Luga. of ethane-containing gas in Russia.”
The project, a joint venture between Gazprom The Ust-Luga complex is on track to com-
and a private Russian partner RusGazDobycha, mence operations in 2023-2024 and will initially
is poised to become Russia’s largest gas pro- use gas from Gazprom’s fields in the Nadym-
cessing facility and one of the world’s biggest in Pur-Taz region of Western Siberia. Starting in
terms of production volumes. At full capacity it 2026, however, it will receive gas from the Tam-
will process up to 45bn cubic metres per year of beyskoye field on the Yamal Peninsula. This is
ethane-rich Siberian gas, producing 18 bcm per despite Novatek CEO Leonid Mikhelson report-
year of treated gas for export to Europe via the edly convincing Russian President Vladimir
Nord Stream 2 pipeline and 13mn tonnes per Putin in a recent meeting to let his company
year (tpy) of LNG. It will also supply the sep- have rights to Tambeyskoye to underpin an LNG
arated ethane to a gas chemical complex that project.
RusGazDobycha is developing in its own, also Concerns of possible delays at the Ust-Luga
in Ust-Luga, in order to produce 3mn tpy of complex were sparked after Gazprom scrapped
polymers. an engineering contract awarded for its process-
The $13bn project is part of Gazprom’s ing facilities to Nipigaz, a subsidiary of Russian
strategy of expanding processing, LNG and petrochemicals group Sibur. Gazprom said it
petrochemicals, in order to add value to its gas had taken the decision to optimise costs, while
resources. Nipigaz said the Russian gas company had not
“We have launched the construction of a decided how to finance the scheme or how
fundamentally new and high-tech industrial much of its equipment should be localised. It
cluster here in the north-western part of Russia,” also pointed to “discrepancies” in the project’s
Gazprom CEO Alexey Miller said at a ceremony risk assessment.
that was also attended by Russian Deputy Energy Gazprom went on to agree terms for a con-
Minister Alexander Novak and other officials. “It tract for the Ust-Luga facilities with Germa-
is essential for the region and the country at large. ny’s Linde.™

NEWS IN BRIEF

AFRICA fourth quarter of 2020. optimistic about Egypt’s gas sector, Capital
Egypt’s natural gas exports received a boost Economics said. The petroleum ministry
Rising gas exports, reduced in 2021 from a recovery in global demand recently estimated that natural gas production
and higher energy prices. In response, Egypt
would rise by 9% by the end of FY2021/22
energy imports drive re-opened the Damietta LNG facility that on the back of further exploration and
resumption of output at key facilities, boosting
had sat idle for nine years and increased
Egypt’s narrowing current operations at Idku to full capacity. Overall GDP by around 1%.
natural gas production has already returned
Although Egypt’s natural gas production
account deficit to its pre-pandemic levels and natural gas and exports will continue to strengthen over
the coming years and support the economic
exports have picked up. Over the course of
The rise in natural gas exports and reduction 2020, Egypt exported only seventeen cargoes recovery from the coronavirus (COVID-19)
in energy imports were a significant driver of LNG, equivalent to 1.7bn cubic metres. But crisis, the research group sounded a word of
of the narrowing of Egypt’s current account since the turn of the year 46 vessels have been caution that stronger natural gas exports will
deficit, Capital Economics said in a research shipped from Egypt and LNG export volumes put further upwards pressure on the Egyptian
note, citing the swing in Egypt’s natural gas year-to-date are up 130% compared with 2020 pound and could lead to the so-called ‘Dutch
trade balance from a deficit of 1% of GDP in as a whole. Disease’.
mid-2017 to a surplus of 0.2% of GDP in the Looking forward, there are reasons to be

P12 www. NEWSBASE .com Week 21 28•May•2021