Page 12 - FSUOGM Week 34

FSUOGM PIPELINES & TRANSPORT FSUOGM

Second tender to build Kamchatka

LNG termina fails

RUSSIA RUSSIAN port operator Rosmorport has can- be transferred from special icebreaking carriers
celled a second tender for a contractor to build onto conventional tankers, reducing costs and
The terminal will an LNG transhipment terminal in Kamchatka, delivery times.
lower the cost of LNG as it did not receive any bids. The terminal is to be sited on the Bechevin-
deliveries to Asia-Pacific The terminal will handle LNG shipments skaya Bay, near to a closed military town and
markets. bound for Asia-Pacific markets from Novatek's submarine base. Its operational launch in 2023
Yamal LNG, Arctic LNG-2 and other future is timed to coincide with the completion of the
export projects in the Russia Arctic. first train of Novatek’s 19.8mn tonne per year
Rosmortport has twice invited companies to (tpy) Arctic LNG-2 project.
submit offers to build the terminal by the end Novatek is hoping to get Japanese financing
of July next year, for no more than RUB10.7bn to pay for the Kamchatka terminal’s construc-
($142mn). These funds have been allocated from tion, the overall cost of which is projected to be
the federal budget. But only one application was RUB70bn. In September it signed deals with
received in the first tender and was later disquali- Mitsui OSK Lines and the Japan Bank for Inter-
fied, and no bids were filed in the second contact, national Co-operation (JBIC) on potential fund-
according to public procurement documents. ing. It is also seeking state support.
The Kamchatka project is being imple- The company plans to build a second, similar
mented jointly by Rosmorport and Novatek. It transhipment terminal in Murmansk, to handle
will enable supplies from Novatek’s projects to Russia’s westbound LNG exports. ™

Gazprom bags $741mn state loan

for Baltic LNG venture

RUSSIA RUSSIA’S state development bank VEB petroleum gas (LPG).
announced on August 24 it would provide a The ethane will be supplied to the separate
RUB55bn ($741mn) loan for an LNG export petrochemical plant RusGazDobycha plans to
project Gazprom is developing on the Baltic Sea. build in Ust-Luga. VEB has also agreed to pro-
The $13bn project in the port of Ust-Luga is vide of up to RUB111bn for this project, which
a joint venture between Gazprom and its private will produce 3mn tpy of polyethylene at peak
Russian partner RusGazDobycha (RGD). Due capacity.
on stream in 2023, it will comprise both gas pro- Gazprom originally wanted to work with
cessing facilities and a liquefaction plant, capa- Royal Dutch Shell on a Baltic LNG project. But
ble of producing 13mn tonnes per year (tpy) of after years of talks, the oil major pulled out in
LNG. 2019 after Gazprom changed the project’s scope
VEB’s funds will be used to prepare project to include gas processing facilities. Shell was
documentation, make advanced payments and reportedly unnerved by Gazprom’s decision to
cover other costs, the bank said. Gazprom and involve RGD in the venture, given the company’s
RGD have awarded an engineering, procure- ties with sanctioned Kremlin ally Arkady Roten-
ment and construction (EPC) contract for its berg and lack of experience in LNG. ™
processing facilities to Nipigaz, a subsidiary of
Sibur, but are yet to pick a contractor for its liq- The Ust-Luga port,
uefaction units. where the project will
The partners struck a 20-year deal in June for be located.
the supply of 45bn cubic metres per year of gas
to the complex from Gazprom’s fields. In addi-
tion to LNG, the complex will also produce 18
bcm per year of treated gas ready for export via
the Nord Stream pipelines. It will also turn out
3.6mn tpy of ethane and 2.2mn tpy of liquefied

P12 www. NEWSBASE .com Week 34 26•August•2020