Page 9 - FSUOGM Week 42 2021

FSUOGM PIPELINES & TRANSPORT FSUOGM

McDermott set for EP contract at

Ust-Luga petchem complex

RUSSIA US contractor McDermott International is in president for Europe, Middle East and Africa, at
line for an engineering and procurement con- McDermott, commented. “The GCC project is a
The ethane cracker will tract at an ethane cracker at a large gas petro- game-changer for the Russian Federation mar-
produce 2.8mn tonnes chemicals project in north-west Russia. ket. It is the biggest single contract in the global
per year of ethylene. The Gas Chemicals Complex (GCC) at the petrochemical field and will be hugely impactful
Baltic port of Ust-Luga is set to be the largest in terms of job creation.”
polyethylene integration project in the world. It McDermott has worked with CC7 before in
is being developed by private Russian company Russia, at the Afipsky hydrocracker project and
Rusgazdobycha and is due online in 2024. the Lukoil delayed coker unit project. It will carry
McDermott has signed a letter of guarantee out work on the GCC ethane cracker from its
with Rusgazdobycha to provide engineering offices in The Hague in the Netherlands, Brno in
and procurement with Chinese partner China the Czech Republic and Gurgaon in India.
National Chemical Engineering and Construc- GCC will be served with feedstock sup-
tion Corporation Seven (CC7). The US company ply from a gas processing complex, also being
will supply the equipment and its other services developed in Ust-Luga by Rusgazdobycha and
for the two-train ethane cracker, which will state-owned partner Gazprom. That project will
produce 2.8mn tonnes per year (tpy) of ethyl- also include an LNG plant, and Gazprom and
ene. The unit will use technology licensed from Rusgazdobycha said earlier this month that they
McDermott’s Lummus subsidiary. were considering the construction of a third liq-
Earlier McDermott provided front-end engi- uefaction train at the planned complex.
neering design (FEED) work for the facility. Linde and Turkey’s Renaissance Heavy
“This additional award is testament to Industries secured an engineering procurement
McDermott’s exemplary performance during and construction (EPC) contract for the lique-
the earlier project phases and our ability to pro- faction complex in mid-September, with analysts
vide integrated solutions throughout the entire hailing the award as a sign of concrete progress
lifecycle of a project,” Tareq Kawesh, senior vice at the project.™

Gazprom boosts gas trading on

SPIMEX, exports could be next

RUSSIA RUSSIA'S natural gas giant Gazprom is respon- increasing sales on SPIMEX as a sign that Rus-
sible for the rise in trading of gas on St Petersburg sian storage fill may be approaching completion,
Analysts believe the exchange (SPIMEX) from less than 1mn cubic as previously in August the company Gazprom
move may indicate meters (mmcm) per day 8mmcm on October 13, largely withdrew gas from SPIMEX in August
Gazprom is preparing according to Interfax. due to the fire in its gas condensate processing
to hold auctions for As followed by bne IntelliNews, gas prices in plant at Urengoy.
exports to Europe. Europe have surged to all-time high, with Gaz- This was coupled with an unusually large
prom has been subject to criticism for exacer- refill of depleted Russian storage and an atypi-
bating the gas supply crisis unfolding in Europe cally early start to the Russian heating season
by not going beyond its minimum contractual occurring in early September.
obligations. Last weekthe Russian President However, as the weather in the European part
Vladimir Putin hinted that Gazprom might of Russia has recently improved, and Gazprom’s
release more supply onto the market. management has signaled that domestic storage
"We take this appearance of a modest amount should reach planned fill levels in the coming
of gas on the St Petersburg exchange for domes- days.
tic sales as a sign Gazprom may soon be able to "If the weather remains reasonably warm
offer more significant amounts for auction for – no cooler than typical seasonal levels – then
export purposes to an undersupplied Europe," Gazprom should be able to offer larger amounts
BCS Global Markets commented. for domestic or international deliveries relatively
The analysts at BCS GM see Gazprom soon," BCS GM argues. ™

Week 42 20•October•2021 www. NEWSBASE .com P9