Page 8 - FSUOGM Week 13 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Latvia mulls LNG terminal construction

LATVIA LATVIA is weighing up the construction of an interest; we will also go to America to inquire
LNG import terminal, and US and Middle East- about the possibilities of building such a termi-
Latvia benefits from ern investors have shown interest in participa- nal on commercial principles, and let’s talk to our
having the Baltic tion, the Latvian economics ministry told local neighbours as well,” Karins said.
region's only gas storage television network LTV on March 27. The Klaipeda LNG terminal in Lithuania has
facility. At least four potential investors have seen an all-time high in its demand this year, with
expressed interest in the project, which would its capacity now fully booked until September.
complement the Baltic region’s only existing Lithuania is the largest consumer of gas among
terminal in Klaipeda, Lithuania, which would the Baltic states, with 20 TWh of demand, but in
have a capacity of 3.8bn cubic metres per year. second place is Latvia with 10 TWh. Latvia also
Latvian Prime Minister Krisjanis Karins justified benefits from having the region’s only working
the development, citing the heightened need for gas storage facility in Incukalns, not to mention
energy security in the wake of Moscow’s invasion its centre position between Lithuania and Esto-
of Ukraine. nia, which consumes 5 TWh of gas. Estonia’s
“There are companies in Latvia that are con- only alternative to gas imported via Latvia is
sidering such an opportunity and have shown Russian supplies. ™

Novatek says Arctic LNG-2 construction

to continue

RUSSIA RUSSIA’S Novatek intends to continue with on their financial commitments, given the
the construction of the Arctic LNG-2 terminal, weight of Western sanctions, which has left
TotalEnergies has said it despite Western sanctions imposed on Russia’s them scrambling for cash. The project has an
will not invest further in oil and gas industry and TotalEnergies’ decision overall budget of $23bn.
Arctic LNG-2. not to invest any further in the project, sources Novatek expects to tow the terminal’s first
told the Moscow-based Kommersant newspaper floating gravity-based structure from Mur-
on March 25. However, the company will put a mansk by the end of August.
pause on its other projects. TotalEnergies has resisted calls to leave Russia
Arctic LNG-2 is due on stream in 2023, and altogether, unlike its international counterparts
at full capacity will produce 19.8mn tonnes BP, ExxonMobil and Shell. Those companies
per year (tpy) of LNG for markets in Asia and have only announced their withdrawal, how-
Europe. The project suffered a setback when ever, and are yet to physically leave. TotalEner-
TotalEnergies announced on March 22 that it gies CEO Patrick Pouyanne told French radio on
would not invest any further in the project. But March 23 that he believed that BP, Shell and oth-
the French major ruled out selling its stake and ers would struggle to divest their Russian assets.
its other interests in Russia, arguing that the ina- “Everybody’s telling me that my Anglo-Saxon
bility to find a non-Russian buyer at this time competitors are leaving,” Pouyanne said. “None
would surely “enrich” Russia. of my competitors have left Russia, nor know
Japan’s Mitsui and JOGMEC have likewise how to leave Russia.”
paused investments at Arctic LNG-2. They Nevertheless, TotalEnergies faces mounting
have a combined 10% interest in the project. pressure to do more to scale back its operations
Italian state lender Cassa Depositi e Prestiti in Russia. NGOs in France have alleged that
and the Russian arm of Italy’s biggest bank the French major is implicated in Russian war
Intesa Sanpaolo have also put a hold on their crimes in Ukraine, and have launched a legal
loans for the project on order of the Italian case against the company. Investors have also
government. And there are concerns about spoken out, including the Church of England’s
whether Russian lenders will follow through pension board. ™

P8 www. NEWSBASE .com Week 13 30•March•2022