Page 6 - GLNG Week 12 2021

GLNG COMMENTARY GLNG

Russia approves long-

term LNG strategy

Russia has approved a long-term programme for

developing its LNG industry and raising its output up

to three-fold

POLICY RUSSIA has approved a long-term programme Russia this year. That terminal too was originally
for developing its LNG industry, targeting up to on track to start up in 2019.
WHAT: a three-fold increase in production to 140mn Novatek aims to commission its next major
Russia has approved a tonnes per year (tpy) by 2035. project, the 19.8mn tpy Arctic LNG-2 plant,
programme to support The country currently produces the bulk of between 2023 and 2025. A final investment
the development of its its LNG at the Gazprom-operated 9.6mn tpy decision (FID) was taken in 2019 on the devel-
LNG industry over the Sakhalin LNG plant in the Far East and the opment, which is underpinned by 2.2 trillion
long term. Novatek-led 16.5mn tpy Yamal LNG facility in cubic metres of C1+C2 gas reserves at the
the far north. Novatek also operates a second Utrenneye field on the Gydan Peninsula.
WHY: 660,000 tpy plant called Cryogas-Vysotsk in Another Novatek project on the horizon is
Several LNG projects north-west Russia. There are a number of other the 5-6mn tpy Obsk LNG, also in the Arctic,
are at various stages projects in the pipeline, however, ranging from although an FID has not yet been reached. The
of development in the some that are already under construction to company was meant to employ Arctic Cas-
country as it seeks to others that are highly speculative. cade at the plant, but it is reportedly looking to
become a larger LNG use technology supplied by Germany’s Linde
player. Projects on the way instead, because of the problems at the fourth
The next two projects expected on stream are Yamal LNG train.
WHAT NEXT: both small in scale. Novatek plans to launch a Novatek was due to take an FID on Obsk LNG
There is considerable 0.9mn tpy fourth train at Yamal LNG in the com- in 2020 but delayed the move until 2021, citing
uncertainty about the ing months. The unit was originally due online the impact of the coronavirus (COVID-19) pan-
pace of Russian LNG in late 2019, and the reasons for continual delays demic on gas markets. According to the govern-
development. are not clear. Novatek has blamed market con- ment’s programme, Obsk LNG is not expected
ditions, although reports in the Russian press to go online until 2024 or later.
suggest the company has had difficulties with its Further ahead there are more unsanctioned
Arctic Cascade liquefaction technology. Arctic projects such as Novatek’s Arctic LNG-1 and
Cascade is being deployed for the first time at Arctic LNG-3 ventures, each expected to have a
the train. capacity of 19.8mn tpy. Arctic LNG-1 is under-
Gazprom, meanwhile, aims to launch the pinned by 357.7bn cubic metres of resources at
1.5mn tpy Portovaya LNG facility in north-west the Soletsko-Khanvaiskoye, Geofizicheskoye

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