Page 10 - GLNG Week 44 2020

GLNG COMMENTARY GLNG

to RUB484.4bn ($6.1bn), but expenses also fell complete at the end of September, up from 21%
almost 18%, to RUB388.3bn. Novatek’s EBITDA at the end of June, Gyetvay said, with the first
was down 21.4% at RUB265.8bn in the nine- train roughly 39% complete. Novatek does not
month period, but was only 10.2% lower in expect any delays in the delivery of LNG topside
the third quarter at RUB93.9bn. It blamed the modules, as around 7,000 workers have been
weaker numbers on low prices, ruble devalua- mobilised at module construction sites in China.
tion and other factors outside its control. “These yards are producing at full capacity
The company’s gas production was up 1.5% today,” Gyetvay said, adding that the first mod-
at 56.71bn cubic metres in January to Septem- ule for the first concrete gravity-based structure
ber and up 4.5% in the third quarter. Gas sales (GBS) is expected to arrive at Novatek’s yard in
in Russia were a source of support, with both Murmansk in September 2021. First gas is still
volumes and prices holding firm. Novatek sells on track to occur in 2023 as planned, he said.
its gas to industrial customers in Russia at partly “We also see no delays in launching the next
regulated tariffs. trains on GBS 2 and GBS 3 in 2024 and 2026,
Novatek expects to outperform the Russian he said.
gas industry and deliver a 2% growth in gas out-
put this year, while Russia as a whole is due to see Smaller projects
a 9-10% decline. Despite some LNG spot cargo Novatek had also hoped to commission a fourth If Arctic Cascade
cancellations in the second quarter, Novatek’s 0.9mn tpy train at Yamal LNG by the end of last
flagship 16.5mn tonne per year (tpy) Yamal year, but its launch has been repeatedly pushed performs as
LNG operated at 113% capacity in the first nine back. Despite its small size, the train is a key expected, Novatek
months of the year, according to Gyetvay. project, as it will employ Novatek’s proprietary
Arctic Cascade liquefaction technology for the will use the
Export expansion first time.
Novatek’s main focus is on its next major export “We plan to complete the construction works technology at
venture Arctic LNG-2, due on stream in 2023. at Train 4 at Yamal LNG by the end of the year
That project would boast an even larger capacity but will start the facility’s commissioning over another, 5mn tpy,
of 19.8mn tpy, with 80% of this supply heading the upcoming weeks,” Gyetvay said. export plant.
to Asia-Pacific markets, according to Gyetvay. If Arctic Cascade performs as expected,
The company recently ordered some 15 LNG Novatek will use the technology at another, 5mn
carriers (LNGCs) from Russia’s Zvezda shipyard tpy, export plant, known as Obsky LNG. The
to serve Arctic LNG-2, along with a further six company plans to develop Obsky LNG without
from South Korea’s Daewoo Shipbuilding & foreign partners, but deferred taking an FID
Marine Engineering (DSME). Russian author- from 2020 until 2021, in light of market condi-
ities had originally wanted Novatek to order all tions and delays at Yamal LNG’s fourth train.
the vessels domestically, but the company argued Pre-front-end engineering and design
that doing so could have held up progress at Arc- (FEED) work on Obsky LNG is still ongoing,
tic LNG-2. and Gyetvay said the company was considering
Construction on the project was 27% some changes to the project’s parameters.™

P10 www. NEWSBASE .com Week 44 06•November•2020