Page 18 - GLNG Week 34

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Second tender for Kamchatka LNG

terminal’s construction fails

PROJECTS & RUSSIAN port operator Rosmorport has can- be transferred from special icebreaking carriers
COMPANIES celled a second tender for a contractor to build onto conventional tankers, reducing costs and
an LNG transhipment terminal in Kamchatka, delivery times.
as it did not receive any bids. The terminal is to be sited on the Bechevin-
The terminal will handle LNG shipments skaya Bay, near to a closed military town and
bound for Asia-Pacific markets from Novatek’s submarine base. Its operational launch in 2023 is
Yamal LNG, Arctic LNG-2 and other future timed to coincide with the completion of the first
export projects in the Russia Arctic. train of Novatek’s 19.8mn tonne per year (tpy)
Rosmortport has twice invited companies to 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

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

P18 www. NEWSBASE .com Week 34 28•August•2020