Page 13 - FSUOGM Week 36 2021

FSUOGM NEWS IN BRIEF FSUOGM

investment in low marginal projects and Novatek: Gas demand Mikhelson also said that the fourth LNG
result in “a market collapse.” production line of the Yamal LNG plant is
“I would not like to see oil prices of over to dwindle by 2030, fast malfunctioning, and the equipment has to
$100 per barrel again, because they can be improved.
stimulate investment in low-margin and monetization needed “We have to admit that our
low-effective projects and then lead to what manufacturers, our factories still have to
we have already experienced, a collapse of Russia has to monetize its gas stocks before learn and learn and learn. … It works,
the market,” he said. 2030–2035 with green energy taking over, but not very well. There are intermittent
The CEO also said that he does not plan Novatek Chairman Leonid Mikhelson said stoppages,” Mikhelson told reporters, noting
to rename Lukoil although it produces not at the Eastern Economic Forum (EEF) on that the equipment has to be improved,
only oil. September 3. rather than thrown away.
There are no reason for further growth “I believe energy transition will happen He also said that Japan’s Mitsui plans to
of the tax burden in the Russian oil at some point. And we forecast it is still join Novatek’s transshipment business in
industry so no new taxes are expected in possible to sign long-term contracts Kamchatka and Murmansk by the end of
2021, and Lukoil is negotiating benefits until 2030–2035. Then gas will not be in 2021.
for development of high viscous and super demand, it is necessary to monetize it now,” “Our partner Mitsui is considering
viscous oil deposits with the government, Mikhelson told a news conference. entering the transshipment business. I think
Alekperov said. Novatek’s Ob facility was reoriented from it will make a decision this year,” Mikhelson
“We are in a permanent dialogue with liquefied natural gas (LNG) production said.
the government, but have found no decision to gas chemistry after President Vladimir He said that all shareholders of Arctic
yet… I hope that in the future we will find Putin’s visit to Tobolsk in December 2020, LNG-2 received an offer to enter the LNG
a solution for such deposits, because they when he suggested creating a gas chemical transshipment business with the same share
should be effective at a price of U.S. $50–55 cluster in the region. as they have in the project.
per barrel of oil,” he said. “We have asked the government … to “Total has entered, the others are
Lukoil is also in talks with the allow us to use the reserves we have at considering,” Mikhelson said.
government over transit of the Korchagin the Ob facility in the new gas chemistry He also said that the Arctic LNG-2
deposit to the excess profit tax, he added. production,” Mikhelson said. project has no difficulties due to the lack of
Alekperov said that the government’s He also said that Novatek is considering support from the European states, and the
damping mechanism to restrain fuel price implementation of the Ob Gas Chemical share of Russian banks in its financing can
growth should be additionally adjusted, Complex project in two phases, and be increased to 60%, and loan raising will
because it becomes less effective at high oil partnership with oil and gas giant Sibur may definitely be completed in 2021.
prices. become part of the second phase. “We have no problems with financing,
He also said that Lukoil is in talks with “We have already reached pre-FEED; we I had to apologize to some banks, because
gas giant Gazprom on purchases of Lukoil’s want to consider two ammonia lines with a they wanted one kind of limits, but we cut
gas produced on the Yamal Peninsula, and capacity of about 2.5 million tonnes. This is the limits. … We have partners, yet we
is ready to launch commercial production at somewhere around 3 billion cubic meters of do not see support from the governments
its deposits in the region at the end of 2023 gas,” he said. of these partners. … We have credit lines
if the gas price continues to rise. “We will create the line of ammonia open for one third of financing from
The two companies are also negotiating ourselves, but if there is anything else Russian banks. Without any question, we
purchases of gas, produced by Lukoil at the besides ammonia, we might do it together can increase it from one-third to 60%,”
Khvalysnky field, located at the Caspian with Sibur,” Mikhelson said. Mikhelson said.
Sea at the border between Russian and According to Mikhelson, the companies “We will certainly complete the loan
Kazakhstan, to sell it to Europe and China. from Europe and Japan express their raising in 2021,” he said.
interest in buying ammonia, and Novatek is
considering them as partners.

Week 36 08•September•2021 www. NEWSBASE .com P13