Page 8 - GLNG Week 48 2021

GLNG AUSTRAL ASIA GLNG

Gorgon Train 1 back online following repairs

PERFORMANCE TRAIN 1 at the Chevron-led Gorgon LNG Trains 2 and 3 at the plant continued to oper-
terminal in Western Australia has returned to ate as normal during the latest outage at Train 1.
service after briefly having been taken offline However, it emerged this week that Train 3 was
in mid-November following the discovery of a shut down for work after Train 1 was returned
minor gas leak. (See GLNG Week 46) to service.
The leak was detected on piping associated “Following the successful repair and restart
with the dehydration unit on Train 1, which was of Gorgon LNG Train 1, we have undertaken a
then shut down as a precautionary measure. controlled shutdown of LNG Train 3 to carry out
Repair work on the piping was completed last repairs on piping associated with the dehydra-
week, allowing the train to return to service. tion unit,” a Chevron spokesperson was quoted
Gorgon is one of the largest LNG projects by Reuters as saying on December 3.
in the region, with its three trains producing a The latest issues at Gorgon come amid strong
combined 15.6mn tonnes per year (tpy) at full LNG demand in Asia ahead of the winter. Aus-
capacity. The facility has struggled with various tralia appears set to be the largest supplier of LNG
operational issues over the past year. Each train to China this year, but based on data from the
in turn was taken offline since the summer of first 10 months of the year, its share of Chinese
2020 to repair weld quality issues discovered on LNG imports has fallen. Meanwhile, Chinese
propane heat exchangers, or kettles. The inspec- imports of US LNG are on the rise, and a series
tions and repairs were completed in the summer of new long-term supply deals struck this year
of this year, when Train 3 was returned to service between Chinese buyers and US LNG producers
after being taken offline earlier in the year. indicate that they are set to keep growing.™

EUROPE

Arctic LNG-2 obtains €9.5bn

in external financing

INVESTMENT THE Arctic LNG-2 project led by Russia’s Arctic LNG-2 did not disclose the identity of
Novatek has secured €9.5bn ($11bn) in external any other of the individual lenders. But Reuters
financing, meaning it now has all funding neces- reported previously that Italy’s SACE, Germany’s
sary to finish construction. Euler Hermes might contribute funds, among
Arctic LNG-2 will consist of three liquefac- others.
tion trains on Russia’s Arctic Gydan Peninsula The rest of financing for the $22bn Arctic
capable of producing almost 20mn tonnes per LNG-2 is due to be covered by the project’s
year (tpy) of LNG. Novatek and its partners shareholders. Novatek operates the scheme
took a final investment decision (FID) on Arctic with a 60% interest, while France’s TotalEn-
LNG-2 back in 2019, even though the necessary ergies and Chinese companies CNOOC and
external financing at that time was not in place. CNPC each have 10% and the remaining
In a statement, Arctic LNG-2 said it had 10% is divided between Japan’s Mitsui and
obtained a 15-year facility from Russian and JOGMEC.
international investors. Russian financiers The Indian press reported recently that
including Gazprombank, VEB.RF and Bank Indian investors were also interested in having
Otkritie are putting forward some €4.5bn, while an equity role in Arctic LNG-2, but no such deals
Chinese lenders including the China Devel- have been announced. Novatek has said before
opment Bank and the Export-Import Bank of it does not want to cede majority control of the
China have committed to provide €2.5bn. A project, meaning there may be as much as a 10%
further €2.5bn is due to come from institutions stake up for grabs.
from OECD member countries, including Japan Arctic LNG’s three trains are due on stream in
Bank for International Cooperation (JBIC). 2023, 2024 and 2026.™

P8 www. NEWSBASE .com Week 48 03•December•2021