Page 10 - FSU OGM Week 11 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Novatek may axe plans to use

own tech at Obsk LNG

RUSSIA RUSSIA’S Novatek is reportedly considering Novatek developed Arctic Cascade as part
dropping plans to use its proprietary Arctic Cas- of efforts to localise more of equipment and
Novatek received cade liquefaction technology at the Obsk LNG technology it uses, in order to support Russian
a patent for Arctic project, in a major blow to Russia’s localisation industry and shield its business from the risk of
Cascade in 2018. drive. international sanctions. The technology is to be
The LNG exporter may use technology sup- showcased for the first time at a 0.9mn tpy fourth
plied by Germany’s Linde instead, the Kom- train at Novatek’s Yamal LNG, but the unit’s
mersant newspaper reported on March 15, launch has been repeatedly postponed.
citing sources. Linde’s technology is also being Difficulties in commissioning this train have
deployed at Novatek’s Arctic LNG-2 project. led Novatek to consider switching to Linde’s
According to the newspaper, Novatek is in the technology at Obsk LNG, Kommersant sources
process of terminating a contract worth €130mn claimed. Another option that the company has
($155mn) issued to Russia’s Kazankompres- on the table is converting Obsk LNG to produce
sormash and Germany’s Siemens in 2019 for ammonia instead of LNG. Novatek CEO Leonid
the supply of compressors and gas turbines. It Mikhelson said in February that the company
is doing so after revising Obsk LNG’s project was exploring the possibility of producing
parameters. ammonia and methanol in the Russian Arctic.
Obsk LNG is due online in 2024-2025 and Novatek received a patent for Arctic Cascade
is expected to produce around 5mn tonnes per in 2018. The technology takes advantage of the
year (tpy) of LNG at full capacity. But Novatek is cold ambient temperature of the Russian Artic
yet to take a final investment decision (FID) on to reduce energy consumption and boost effi-
the project, which it wants to develop without ciency. It uses produced and fabricated by Rus-
equity partners. sian manufacturers only. ™

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