Page 12 - GLNG Week 43

GLNG EUROPE GLNG
Russia could increase number of LNG exporters
POLICY
RUSSIA’S Ministry of Economic Development has suggested increasing the number of compa- nies eligible to export LNG in order to increase investment appeal of Arctic extraction, RBC business portal reported on October 30 citing the ministry’s proposal.
Currently only Gazprom, Rosneft, and Novatek have the right to export LNG from Rus- sia. Novatek’s valuation soared and it became one of Russia’s most valuable companies after it was granted permission to develop LNG projects.
Increasing the number of LNG exporters would further undermine the pipeline exports monopoly of Gazprom. The gas giant already cried foul in the past arguing that LNG exports threaten its market position in Europe.
Reportedly, the ministry proposes amending the gas exports law and allowing residents of the Arctic hydrocarbon cluster to export LNG. This could potentially allow private oil major
Lukoil to export LNG from its Obskaya project, unnamed sources told RBC. Another potential exporter could be Alltech’s proposed Pechora LNG project, which would source feedstock gas from the Korovinsk and Kumzhinsk fields in the Nenets region.
LNG is Gazprom’s weak spot, as the company operates only one LNG plant in Sakhalin and is facing delays in the planned Baltic LNG project after Royal Dutch Shell recently pulled out of the scheme. In the meantime, Novatek has almost caught up with state oil and gas majors in terms of capitalisation after adopting and successfully carrying out its ambitious LNG strategy.
“The LNG gas would be delivered to Europe via the Northern Sea Route, which is the tradi- tional Gazprom’s market, while the LNG pro- ducers will be exempt from MET and other taxes for 12 years, and as a result the state will lose,” an unnamed representative of Gazprom told RBC.™
AMERICAS
Chinese LNG distributor
proposes LNG processing
facility in British Columbia
A Chinese distributor of LNG, Top Speed Energy (TSE), has said wants to build a
NEWS IN BRIEF
processing facility near Terrace, in the Canadian province of British Columbia.
TSE sent a letter to area residents near the site on October 16, local media reported, seeking feedback on a facility that could process 150,000 tonnes per year (tpy) of LNG. The project, Skeena LNG, is small enough for the company to bypass federal and provincial environmental assessments, according to the letter. Instead, TSE will
submit a permit application to the BC Oil and Gas Commission (OGC) and any required applications to the City of Terrace.
The facility would be located on Qinhuangdao Economic and Technological Development Zone land. The site is privately owned by Taisheng International Investment Services, which bought the land in 2014.
The project would receive natural gas from a nearby pipeline. Power to treat and liquefy the gas would come from a nearby BC Hydro transmission line.
NextDecade announces
$50mn investment by
Mubadala
NextDecade and Mubadala Investment,
the Abu Dhabi-based sovereign investor, announced today that they have reached agreement for Mubadala to purchase $50mn of NextDecade’s common stock in a private placement. NextDecade will issue the common stock to Mubadala at a price of $6.27 per share.
Mubadala’s investment further strengthens
P12
w w w . N E W S B A S E . c o m
Week 43 31•October•2019