Page 19 - bne_newspaper_May_24_2019

Eastern Europe
May 24, 2019 www.intellinews.com I Page 19
Russia's Novatek plans third LNG project for 2022
Novatek, Russia's second-largest gas company with ambitious liquefied natural gas (LNG) strategy, plans to launch its third LNG plant Obskiy LNG in 4Q22, Interfax reported on May 21 citing the CEO of the plant Vladimir Khurtin.
This month Novatek has cemented the progress on its second LNG plant Arctic LNG-2 with
a number of equity deals, long-term supply contracts with traders, and signing a deal with an engineering and construction contractor.
The announcement of the early launch of Obskiy is positive, "as the market does not consider it a part of Novatek’s market cap," BCS Global Markets commented on May 22.
Obskiy LNG, to be located in the vicinity of Sabetta port on the Arctic Yamal peninsula, is expected
to consist of 3 trains with 1.6mn metric tonnes
capacity each, with the first line may be launched in 4Q22, the second in 2Q23 and the third in 3Q23.
Novatek has not yet disclosed the cost of this plant, but, according to experts, it may be about $6bn, BCS GM estimates, reminding that Obskiy will be constructed simultaneously with Arctic LNG 2.
Novatek launched its first major LNG project Yamal in 2017 despite Western sanctions against one of the company’s prominent shareholders and influential Kremlin insider and stoligarch Gennady Timchenko. To avoid trouble Timchenko subsequently reduced his share in the company, but remains a big minority shareholder.
The company has adopted an ambitious strategy for LNG growth through 2030 and is now lining up a tanker transportation strategy to back it up.
Ukraine faces political crisis as newly sworn-in President Zelenskiy dissolves parliament
Ukrainian President Volodymyr Zelenskiy announced the dissolution of the nation's parliament, the Verkhovna Rada, immediately after he was sworn in on May 20.
"I dissolve the Verkhovna Rada," Zelenskiy said in his address to the people of Ukraine after he took the oath in the parliament, however, it was unclear exactly when Zelenskiy is going to sign a special presidential decree that makes the order law.
Zelenskiy’s order to dissolve parliament is controversial as it is not entirely clear that
he can order the parliament to break up. The statement followed May 17's collapse of the ruling parliamentary coalition as a result of the withdrawal of the People's Front faction, headed by former prime minister Arseniy Yatsenyuk.
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