Page 15 - GLNG Week 39

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Jemena to extend NSW gas pipeline

PIPELINES & AUSTRALIAN pipeline operator Jemena has modelling suggests an extension of the EGP
TRANSPORT unveiled plans to plans to extend its Eastern Gas would be capable of delivering upwards of 300
Pipeline (EGP) by around 185 km north from TJ [7.81mn cubic metres] per day to the Hunter
New South Wales’ capital city of Sydney to the Valley, which can be used to generate approxi-
Hunter Valley region. mately 1,500 MW of electricity.”
The infrastructure company said on Sep- The executive said Jemena was preparing to
tember 28 that the extension of the 797-km begin community and stakeholder engagement
EGP would connect the region, which is home on pipeline route options.
to Newcastle and the Central Coast, to existing Jemena’s announcement comes after it
domestic gas fields. Moreover, it is also expected revealed earlier in the month that it intended to
to expand access to liquefied natural gas (LNG) connect EGP with the proposed Port Kembla
import terminals proposed at both Port Kembla LNG import terminal via a 6-km spur.
and Newcastle. In order to handle increased gas supplies, the
Managing director Frank Tudor said his com- company wants to expand EGP’s capacity by 25%
pany intended to invest upwards of AUD400mn while also modifying the pipeline to move gas
($287.23mn) to extend the pipeline north from bi-directionally between NSW and Victoria.
Horsley Park into the Hunter Valley. Jemena EGP is currently capable of delivering 360
expects to make a final investment decision TJ per day of gas from Longford in Victoria’s
(FID) on the extension project by the end of Gippsland region to Sydney and Canberra.
2021, with first gas to flow in 2023. However, the upgrade would allow Jemena to
Tudor said: “Our project is ideally placed to deliver more than 200 TJ (5.21 mcm) per day
shore up supply for industry in the region and of gas from NSW to the Victorian market, while
would be capable of servicing new gas-pow- being able to supply up to 450 TJ (11.72 mcm)
ered generation on the Central Coast. Our early per day to NSW.™

EUROPE

Novatek freed of debt

guarantees at Yamal LNG

INVESTMENT RUSSIAN gas exporter Novatek reported on
September 24 that it had been relieved of debt
service guarantees at the Yamal LNG terminal,
after fulfilling all the conditions stipulated in the
project’s external financing.
The “milestone,” as Novatek CEO Leonid
Mikhelson described it, should enable Novatek
to attract cheaper financing for its new projects
and increase dividend payouts from Yamal LNG.
“This news should have been fully antici-
pated by the market, as management had stated
on recent conference calls that the project had
met all the criteria for the guarantee’s removal,”
analysts at BCS Global Markets (BCS GM) wrote Novatek has been freed of its debt guaran-
in a research note. “Nonetheless, the formal step tees at Yamal LNG at a time when it is working
should still be at least modestly positive for the to finalise external financing for its next LNG
stock.” export project, Arctic LNG-2. The $21bn devel-
Yamal LNG was brought on stream in opment is reportedly set to get $9.5bn in funding
December 2017 and now produces 17mn tonnes from international banks, and additional fund-
per year (tpy) of LNG. Roughly 70% of its $27bn ing from domestic lenders.
cost was paid for through external financing, pri- Arctic LNG-2 due online in 2023 and its out-
marily from Chinese and Russian lenders. The put is scheduled to ramp up to almost 20mn tpy
remainder was covered by Novatek and its equity within three years. Novatek’s equity partners
partners in the project, France’s Total and China’s there are Total, China’s CNPC and CNOOC, and
CNPC and Silk Road Fund. Japan’s Mitsui and JOGMEC.™

Week 39 02•October•2020 www. NEWSBASE .com P15