Page 97 - RUSRptOct18

companies after adopting and successfully implementing ambitious Liquefied Natural Gas (LNG) strategy, recently becoming one of top five of Russia's most valuable companies , along with Sberbank state-controlled bank, Lukoil, and Rosneft oil majors . The supplies of LNG to Latin America "proves the efficiency of our logistics model and unique geographic location of Yamal LNG project allowing competitive LNG deliveries to virtually any point globally," the head of Novatek Leonid Mikhelson commented. Novatek launched its first major LNG project Yamal in 2017 despite Western sanctions against its shareholder and influential Kremlin insider and stoligarch Gennady Timchenko . The adopted an ambitious strategy for LNG growth through 2030 and is planning a second LNG plant, Arctic-2. Novatek has already agreed to sell a 10% equity share in the project to France's Total for $2.55bn (giving it a valuation of $25.5bn) and is reportedly in talks to bring South Korea's Kogas on board . Ambitious LNG output plans had Novatek busy looking for shipment solutions . In May Novatek established MAT, its own transportation subsidiary, (Morskoy Arktichesky Transport, or Sea Arctic Transport in English), to manage it’s fleet of tankers and icebreakers delivering LNG from its major projects. The company also reportedly plans to build an additional transshipment sea terminal in Ura Bay , Murmansk with annual capacity of 20mn metric tonnes.
Gazprom Export has started selling gas on its new electronic trading platform since September 17, the company's materials show. A total of just over 1bn cubic meters are put up for sale by the end of 2018. Of that about 70mn cubic meters is proposed for delivery in October, 477mn and 492mn cubic meters were the maximum volumes that can be delivered during November and December, respectively. Clients are offered several points to, which the Russian company guarantees gas delivery: Gaspool VP, NetConnect Germany and Widhaus in Germany, Baumgarten or Oberkappel in Austria and VTP hub in Slovakia. On August 7, Gazprom Export announced the opening of an electronic trading platform for gas sales to Europe. At the same time registration of participants began, which takes at least three weeks from the date of application. "This tool will improve the interaction with our customers in Europe, making the mechanism of gas sales even more effective. In addition, we expect that this platform will be an additional way to optimize gas supplies," said Elena Burmistrova, Director General of Gazprom Export.
Russia's second-largest gas company and global LNG market runner-up
Novatek secured the investment of Chinese state-owned shipping and logistics major COSCO and the Silk Road Fund for its LNG transportation subsidiary MAT , Kommersant d aily reported on September 3. Ambitious LNG output plans had Novatek seek for shipment solutions and in May the company established MAT (Morskoy Arktichesky Transport, or Sea Arctic Transport in English), to manage it’s fleet of tankers and icebreakers delivering LNG from its major projects. Now, reportedly, the Chinese consortium could own 49.9% in the company, which should simplify raising Chinese funds for construction of new sea tankers, but could have Chinese shipbuilders pull part of the orders. Novatek is searching for more tankers to transport LNG , as its production volumes increased, and in August the company reportedly asked ship-owner Teekay to deliver a second Arc7 tanker earlier than previously planned. In addition, Novatek plans to build a transshipment sea terminal in Ura Bay, Murmansk with annual capacity of 20mn metric tonnes. Novatek launched its first major LNG project Yamal in 2017.
Novatek has announced the discovery of deposits containing an
97 RUSSIA Country Report October 2018 www.intellinews.com