Page 9 - GLNG Week 09 2021
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Novatek strikes LNG supply
deal with Shenergy
PROJECTS & RUSSIAN LNG exporter Novatek has struck a CNPC and CNOOC Ltd also each have 10% and
COMPANIES deal to supply over 3mn tonnes per year (tpy) of a further 10% is divided between Japan’s Mitsui
the super-cooled gas to China’s Shenergy. and JOGMEC.
The gas will come from the Novatek-led Arc- This marks the third contract signed by
tic LNG-2 project, due to start up in 2023, and Novatek’s subsidiary Novatek Gas & Power Asia.
will be sent to Chinese import terminals on a It signed its first for 1mn tpy of supply to com-
delivered ex-ship basis. modities trader Vitol in 2019. The company is set
Novatek CEO Leonid Mikhelson said the deal to provide a further 1mn tpy to Spain’s Repsol.
was part of its strategy “to diversify our client State-owned Shenergy buys and distrib-
base and target end-consumers in the fast-grow- utes gas in China, handling around 10bn cubic
ing Asia-Pacific region.” metres of supply per year. The company also
“The Chinese market is one of the key regions signed a heads of agreement (HoA) with Malay-
in our LNG marketing strategy, and we plan to sia’s Petronas in January to receive 1.5mn tpy of
further increase our supplies of LNG to this supply.
country,” he said. Novatek’s other up and coming project is
Arctic LNG-2’s three trains are due online Obsk LNG, which is anticipated to come online
in 2023, 2024 and 2026, producing a total of in 2024. A final investment decision (FID) is still
19.8mn tpy of LNG at full capacity. Novatek pending, although Mikhelson recently suggested
operates the project with a 60% interest, while the project’s output could be 20-25% more than
France’s Total has 10%, Chinese companies the original plan of 5mn tpy.
MIDDLE EAST
QP continues series of LNG-
related contract awards
PROJECTS & STATE-OWNED Qatar Petroleum (QP) has associated pipes, lines and loading lines,” he said.
COMPANIES continued handing out contracts related to This is the second major onshore EPC con-
its North Field East (NFE) expansion project, tract award for the NFE project after QP awarded
which will underpin the country’s push to grow the first, covering the construction of four LNG
its LNG capacity. mega-trains and associated facilities, to a joint
On March 1, the company announced that venture between Chiyoda and Technip Energies
it had awarded a “major” engineering, pro- in February.
curement, and construction (EPC) contract to Both of these contracts represent the cul-
Samsung C&T for the expansion of LNG stor- mination of front-end engineering and design
age and loading facilities located within Ras (FEED) work that began in early 2018, QP stated.
Laffan Industrial City. The contract is worth The company’s Qatargas subsidiary also awarded
more than $2bn and was awarded on a lump a contract worth around $1.7bn to Italy’s Saipem
sum basis. on February 22, covering the engineering, pro-
“This contract provides for the expansion of curement, construction and installation (EPCI)
existing infrastructure required to ensure the of various offshore facilities at the North Field.
safe loading and on-time delivery of our LNG (See GLNG Week 08)
cargoes to our international customers across Qatar is in the process of increasing its LNG
the globe,” stated Qatar’s Minister of State for production capacity from 77mn tonnes per
Energy Affairs, Saad Sherida Al-Kaabi, who year to 110mn tpy by the end of 2025. The sec-
is also the president and CEO of QP. “Its scope ond phase of the planned expansion, the North
includes three LNG tanks and three LNG load- Field South (NFS) project, is anticipated to raise
ing berths for NFE, and options for two LNG Qatar’s LNG production capacity further, from
tanks and one LNG berth for NFS project, and all 110mn tpy to 126mn tpy by 2027.
Week 09 05•March•2021 www. NEWSBASE .com P9
