Page 8 - FSUOGM Week 16 2021

FSUOGM COMMENTARY FSUOGM

Novatek makes another bid for

Gazprom's Tambey fields

Mikhelson has reportedly convinced Putin that the Tambey fields would be

better used for LNG

RUSSIA RUSSIA’S largest LNG producer Novatek is including 2.5 tcm in C1 reserves and 4.8 tcm
once again in discussions with the Russian gov- in C2 reserves. Gazprom head Alexei Miller
WHAT: ernment to acquire the Tambey group of fields has described them as a world-class project,
Novatek wants control of on the Yamal Peninsula, currently belonging to even though the company apparently can-
Gazprom's Tambey fields. Gazprom. Novatek CEO and major shareholder not settle on a feasible means of developing
Leonid Mikhelson proposed the move in a meet- them.
WHY: ing with Russian President Vladimir Putin on His rival Mikhelson managed to convince
Novatek wants to use April 13, Kommersant reported last week citing Putin in their latest meeting that it is strategically
the fields' gas for LNG sources. more profitable for Russia that the assets are used
exports, but Gazprom has The undeveloped fields – Tambeyskoye, for LNG rather than pipe exports, Kommersant
pipe plans in mind. Malyginskoye, Yuzhno-Tambeyskoye and Sya- sources claimed. Previously the Russian billion-
dorskoye – have been under Gazprom’s control aire had offered to pay for the fields partly in cash
WHAT NEXT: since 2008, when the company secured rights to and partly in Novatek shares, of which nearly
Analysts doubt that the them without having to bid in a tender. But the 10% are already controlled by Gazprom. But
bid will be successful, company is yet to sign off on a development plan, Gazprom is still opposed to the deal, according
however. and has spurned repeated requests from Novatek to Kommersant.
to form a partnership to use the gas to underpin The Tambey fields contain significant
LNG exports. Gazprom instead favours using amounts of so-called wet gas, with a high ethane
the fields for pipeline gas exports, either to its content.
main market Europe or to China via the pro- “This presents a problem for pipeline use
posed Power of Siberia 2. – albeit not insurmountable – but separating
The Tambey group holds 7.3 trillion cubic out these liquids and selling them separately
metres of gas, according to state estimates, is a relatively easy part of the gas liquefaction

P8 www. NEWSBASE .com Week 16 21•April•2021