Page 16 - GLNG Week 24 2022
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Russia’s Novatek exposed as Baker
Hughes set to pull LNG equipment
TECH THE US Baker Hughes is terminating service While both Sakhalin-2 and Yamal LNG are
agreements on all Russian LNG (liquefied natu- already operational, the timing of the completion
ral gas) projects, in particular pulling out its engi- of Arctic LNG 2’s first train directly depends on
neers from Gazprom’s Sakhalin-2 and Novatek’s these deliveries, Kommersant notes.
Yamal LNG, as well as Novatek’s Arctic LNG-2 In particular, the first line with 6.6mn tonnes
under construction, Kommersant daily reported of LNG capacity is directly dependent on sup-
citing unnamed sources. plies of Baker Hughes’ LM9000 gas turbines. Out
As followed by bne InelliNews, in March of seven turbines planned, only half have so far
2022, for example, the US-based oilfield service been shipped, with no domestic equivalent to the
giants Baker Hughes, Weatherford International equipment available.
and Schlumberger announced they were scrap- Arctic LNG-2 has relied significantly on
ping all new investment in Russia following Western equipment and technology, not to men-
the fourth sanctions package of the EU, which tion financing to cover its $21bn cost.
banned investment in the energy sector in Under a final investment decision (FID)
response to Russia’s military invasion of Ukraine. taken in 2019, Arctic LNG-2 is scheduled to
Halliburton, another major oilfield service pro- start up in 2023 and reach its full three-train
vider (OSP), has also said it will cease operations capacity of almost 20mn tonnes per year (tpy) in
in the country. 2016. But while its equity partners in the project
In April, the CEO of Novatek, Leonid Mikhel- including France’s TotalEnergies have decided to
son, warned that the schedule for its upcoming remain, several financiers, insurers, contractors
Arctic LNG-2 project could be delayed because and suppliers have announced their withdrawal.
of sanctions. As for Sakhalin-2 (in which Gazprom holds
Despite Gazprom and Novatek not being a 50%+1 share), it has a long-term service con-
under direct sanctions, Baker Hughes is report- tract for the maintenance of four Frame 7EA
edly halting shipments of equipment for all LNG turbines and five Frame 5 turbines, according to
projects in Russia, including the gas turbines. Kommersant.
P16 www. NEWSBASE .com Week 24 17•June•2022
