Page 11 - GLNG Week 36 2021

GLNG NEWS IN BRIEF GLNG

stood at 22.5 bcm.
In the January-June period last year, LNG
held a 45.7% share out of the country’s total
natural gas imports.
Last year, LNG prices hovered around
$4.5-$5 per million British Thermal Unit
(mmBtu), compared to around $13-14 per
mmBtu this year.
Higher oil prices, increasing carbon prices
and expanded demand in Europe due to
extremely hot summer conditions, as well as
growing consumption with the recovery from
the coronavirus pandemic, all helped hoist
LNG prices.

Turkey’s BOTAS, Arkas and

Toscana which is permanently moored about analysts note while reminding that more than Sumitomo to cooperate in
22 km off the Italian coast between Livorno half of the company’s sales are not gas.
and Pisa, in the Region of Tuscany. Given this, Sova sees Novatek’s shares as use of LNG as bunker fuel
This total project includes 6 x double fairly priced, noting that “Novatek is the most
Quick Release Mooring Hooks for FSRU, all expensive stock in our universe on multiples, Turkey’s state-owned natural gas distributor
with explosion proof capstans, remote release though this does not seem to be deterring the BOTAS, Arkas Bunkering, owned by
system and ATEX certified load cells for a market.” Turkish company Arkas Holding, and Japan’s
continuous measurement of the mooring Further catalysts for the name include Sumitomo Corporation have signed an
loads. A central monitoring system in the publication of solid 2H21 results, the sale agreement to cooperate in the use of LNG as
control room will show alarms, visualisation of 9.9% of Arctic LNG2 plant to an Indian bunker fuel on vessels.
and history of the load monitoring and offers consortium, and gas prices remaining high The agreement aims to make such use of
a release function for each and all hooks. globally. Main risks according to Sova include LNG more prevalent, the companied said in a
STRAATMAN, September 09, ‡ gas prices in 2022-2023 being weaker than statement. The adoption of LNG is important
expected, the highly unlikely changes in since it helps reduce carbon dioxide, nitrogen
Upside on shares of taxation, and increased costs for materials. oxide and sulfur emissions, the companies
point out.
Novatek is securing the financing for
Russia’s Novatek seen Arctic LNG-2, its second liquefaction project Maritime Organization (IMO), which
New regulations from the International
to launch production. Its first, Yamal LNG,
limited by gas price rally went on stream in December 2017 and is necessitate the reduction of emission rates
now producing 17mn tonnes per year (tpy) of
of marine fuels, make the signed tri-party
Sova Capital analysts upgraded the target super-cooled gas. agreement even more crucial, according to
price on the shares of Russian gas major BOTAS.
Novatek by 36% and 24% to RUB1,980 per According to IMO estimations, carbon
share and $270 per Global Depository Receipt dioxide emissions will drop by 40% in 2030
(GDR), respectively, and reiterate the Hold MIDDLE EAST and by 70% in 2050, while the number of
rating on the name. LNG-powered vessels and LNG bunkering
Novatek posted 84% year-on-year and 8% Turkey’s LNG imports drop stations is expected to increase significantly.
quarter-on-quarter growth in revenues in The tri-party agreement will ensure that
2Q21 under IFRS to RUB264bn ($3.6bn), with 41.3% y/y to 6 bcm in 1H on Turkey retains its role as one of the largest fuel
EBITDA jumping 3.5-fold y/y to RUB83bn supply hubs in the East Mediterranean while
(margin flat q/q), and net income more than record high prices also promoting LNG as a bunker fuel.
doubling y/y to RUB99.3bn. “The number of bunkering vessels, which
“Novatek has outperformed just about Turkey’s LNG imports dropped 41.3% y/y are used in providing LNG bunkering
every other stock in our coverage universe, to 6bn cubic metres (bcm) from in 1H, services, particularly in Europe’s main
but we see the company’s upside as limited according to the Energy Market Regulatory terminals such as Rotterdam and Barcelona, is
despite record-high gas prices in Europe,” Authority (EPDK). increasing day by day,” BOTAS said.
Sova Capital commented, expecting the share The imports sank as LNG prices From 2019 to 2020 the number of LNG
price to continue to exhibit strength in the strongly rebounded to hit record highs on bunkering vessels doubled to 12 and the
near term, but possibly drop “once gas prices international markets. number of vessels on order has increased
inevitably start to come down”. The shipments accounted for one fifth to 27, according to state-run news service
While the company benefits from record- of Turkey’s total natural gas imports in the Anadolu Agency.
high gas prices globally, its share of gas sales first half of 30.3 bcm, a figure that was up
as a portion of total revenue decreased 43% in 35% y/y. A year ago, LNG imports were
2Q21 versus an average of 51% in 2020, Sova 10.3 bcm, while total natural gas imports

Week 36 10•September•2021 www. NEWSBASE .com P11