Page 130 - RusRPTNov20

● Rosneft
Rosneft could include a 30-50mnt LNG plant in its Vostok Oil project, CEO Igor Sechin said ​22 October, during the XIII Eurasian ​ Forum, as reported by Interfax. In a presentation on Sever Bay near the town of Dikson in Russia’s Krasnoyarsk Krai, Sechin said Rosneft plans to transport 100mnt of oil, 50mnt of coal and 30-50mnt of LNG via the Northern Sea Route. This is the first mention of an LNG project at Vostok Oil. Rosneft is reportedly interested in gas fields (Deryabinskyoe and Turkovskoye) in the north of Krasnoyarsk Krai, and the company has requested that these fields only be auctioned off to companies that meet certain conditions. These conditions include that the auction winner must have existing projects in Krasnoyarsk Krai’s Arctic zone, as well as be committed to transporting gas from these fields along the Northern Sea Route with ice-class carriers built in Russia. Such conditions imply that only Rosneft would be eligible to bid for these gas fields, according to Minster of Natural Resources Dmitry Kobylkin. The auction should take place by the end of the year. Rosneft recently received tax incentives tied to investments in the Vankor cluster, which will be part of Vostok Oil. Regarding the addition of LNG, we view the mention of an LNG terminal in Mr. Sechin’s presentation during the XIII Eurasian Economic Forum as neutral until more details emerge on the cost and timing. The oil transshipment terminal at Sever Bay is expected to launch by 2024 and increase in capacity from 25mnt to 50mnt, reaching its full capacity of 115mnt in 2030. In addition, 10 tankers will be built to transport oil to Europe and Asia.
● Novatek
Gazprom​ and​ ​Novatek​ are to participate in the gasification of Kamchatka, Kommersant reports. Novatek is to construct a regasification terminal with capacity of up to 600kt/a near Petropavlovsk-Kamchatsky and sell its LNG to Gazprom at an export netback, according to the current discussions of the issue. Gazprom, in turn, is to build pipeline infrastructure from the terminal to key consumers (RusHydro’s generating assets) and sell the regasified gas at a regulated internal tariff. Another option that is reportedly being considered is supplying LNG from Gazprom’s Sakhalin 2 LNG plant.
Russian gas producer ​Novatek ​has announced plans to ship 80% of the liquefied natural gas (LNG) from its Arctic LNG 2 plant to Asian markets via the Northern Sea Route, ​RT ​reports. According to the head of Novatek Leonid Mikhelson,” The plant’s three liquefaction lines with a total capacity of 19.8mn tons of LNG will be launched starting in 2023.” LNG supplies to Asia will become possible due to the year-round navigation of ships along the Northern Sea Route (NSR), he told participants of the LNG Producer – Consumer Conference in a video message. Mikhelson added that after the commissioning of the new nuclear-powered icebreakers LK-60, it will be possible to use all the routes of the NSR year-round. “The lead icebreaker
130 ​RUSSIA Country Report​ November 2020 www.intellinews.com