Page 11 - FSU OGM Week 26

FSUOGM PIPELINES & TRANSPORT FSUOGM

Heirs of deceased Russian billionaire to

sell LNG project to German kickboxer

RUSSIA THE heirs of deceased Russian billionaire Dmi- implement the project, transferring a 50.1%
try Bosov are negotiating the sale of the Pechora stake to the state oil company.
Alltech has been LNG export project in northern Russia to a The project’s small size and remoteness had
searching for a buyer company founded by German kickboxer Chalid raised doubts about its feasibility. This perhaps
for Pechora LNG for Arrab, RBC reported on June 25 citing sources. explains why the government decided not to
some time. Bosov, who committed suicide in early May, grant the partners a licence to export LNG, effec-
owned Alltech group, which in turn controls tively leaving their resources stranded without a
100% of Pechora LNG. But Bosov’s heirs want to market. The pair also considered the construc-
divest the project to Arrab’s Lloyds Energy, RBC tion of a gas-based petrochemical plant at the
claims. site, but this plan too was dismissed as unrealis-
Alltech has been searching for a buyer for tic. Rosneft sold its share back to Alltech in 2018.
Pechora LNG for some time. The project con- Even without LNG production, the assets
sists of the Korovinskoye and Kumzhinskoye still have value, given their close proximity to the
gas fields in Russia’s far northern Nenets region. Layavozhskoye and Vaneyvisskoye gas deposits
They are estimated to contain 160bn cubic that Gazprom is looking to develop with Lukoil.
metres of gas and 3.9mn tonnes of condensate in Bosov died from a self-inflicted gunshot
ABC1+C2 reserves. wound at his home in Usovo, in the Moscow
Alltech had wanted to use these resources region, on May 6. His main assets were Siberian
to underpin the construction of a liquefaction coal producers Sibanthracite group and Vostok-
terminal. It teamed up with Rosneft in 2015 to Coal MC. ™

INVESTMENT

Sibur, Sinopec strike shareholder

deal for Amur chemicals complex

RUSSIA RUSSIAN petrochemicals giant Sibur has signed years. The Chinese firm bought a 10% stake in
a shareholder agreement with China’s Sinopec Sibur in 2015.
The Amur GCC will on forming a joint venture to build the Amur gas Much like the oil and gas market, the global
produce up to 2.3mn chemical complex (GCC), Russia’s Prime news petrochemicals market has been grappling with
tpy of polyethylene agency reported on June 29. oversupply over the past year, owing to weaker
and 400,000 tpy of The pair struck the deal in June and are demand in Asia and extra production capacity
polypropylene, using working on securing regulatory approvals, the coming on stream. The coronavirus (COVID-
feedstock from Power of agency reported citing Sibur documents. The 19) pandemic has exacerbated the situation.
Siberia’s gas. Moscow-based firm said back in May that Sin- Sibur swung to a RUB52.3bn ($707mn) loss
opec’s board had already cleared the deal, which in the first quarter, after ruble devaluation drove
is expected to see the Chinese firm take a 40% up the value of its foreign-denominated loans.
stake in the project. Its revenues were also down 7.8% year on year
The Amur GCC in the Russian Far East is owing to the collapse in prices, although the
expected to produce 2.3mn tonnes per year of blow was cushioned by a ramp-up in production
polyethylene and 400,000 tpy of polypropylene. at its new Zapsibneftekhim complex in Western
It will be supplied with 3.5mn tpy of ethane and Siberia. ™
LPG feedstock produced at Gazprom’s Amur
gas processing plant (GPP), which is due to start
handling Russian gas on route to China via the
Power of Siberia pipeline starting in 2023.
Sibur has repeatedly delayed taking a final
investment decision (FID) on the project, which
it anticipates will cost $10.7bn, because of diffi-
culties attracting partners to cover some of the
project’s expenses and share some of its risks. It
has been holding talks with Sinopec for over five

Week 26 01•July•2020 www. NEWSBASE .com P11