Page 10 - FSU OGM Week 22 2021

FSUOGM PERFORMANCE FSUOGM

Gazprom targets 11.7% climb

in gas output in 2021

RUSSIA RUSSIA’S state-owned Gazprom is targeting an its Ust-Luga gas processing and LNG project in
11.7% growth in gas production in 2021, com- north-west Russia may slip behind schedule. The
Gazprom also reported pany executives said in a presentation on May 27. company terminated a contract to the project’s
contracting all the Gazprom bore the brunt of the collapse in lead contractor Nipigaz in March, and is set to
helium from its Amur European gas demand last year as a result of the bring on board Germany’s Linde as a replace-
gas processing plant. coronavirus (COVID-19) pandemic, in part ment. Despite the switch, Gazprom nevertheless
because its oil-indexed gas supplies were uncom- broke ground on the complex in late May.
petitive versus spot price-based LNG. “We do not see any problems in terms of the
The Russian producer has got off to a good impact of the change of contractor on the pro-
start this year, however, delivering 26.7% more gress of work,” Gazprom’s deputy chairman, Vit-
gas to countries outside the former Soviet Union. aly Markelov, said. “We control all aspects that
Demand in Europe has soared this year on the are connected with this project.”
back of colder weather and an economic recov- The Ust-Luga complex is due to go online in
ery. The tightening of the market led to day- 2024.
ahead contract prices at the Dutch TTF hub Gazprom also revealed that it had contracted
spiking at $341 per 1,000 cubic metres on May almost all the helium due to be produced at the
14. Amur gas processing plant (GPP) for sale. Amur
Gas storage levels in Europe are also record GPP will treat helium-rich gas on route to China
lows, and these facilities will have to be refilled via the Power of Siberia pipeline. Construction
ahead of the next heating season. is now more than 76% complete, Gazprom said.
Thanks to these positive conditions, Gaz- The company plans to start commissioning its
prom expects to increase gas production by first train during the current quarter, and the
11.7% this year to 506.5bn cubic metres, up complex should reach its full capacity of 42 bcm
from 453.5 bcm in 2020. The company added per year by early 2025.
that output at Bovanenkovskoye, one of its larg-
est gas fields, was anticipated to top 100 bcm this The Amur GPP will produce around 60mn
year. Production at the Yamal Peninsula field hit cubic metres per year of helium. “Almost all of
99 bcm in 2020. it has been contracted,” Markelov said. “The
Gazprom also hit back against concerns that demand for it in the world is quite good.” ™

P10 www. NEWSBASE .com Week 22 02•June•2021