Page 9 - GLNG Week 08 2021
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Novatek mulls larger Obsk LNG terminal
PROJECTS & RUSSIAN gas supplier Novatek is considering mini-train Novatek is preparing to launch at its
COMPANIES expanding the target capacity of its Obsk LNG Yamal LNG plant. This 950,000 tpy train should
project in the Russian Arctic, company CEO start up “in the coming weeks,” Novatek’s man-
Leonid Mikhelson said during a conference call agement said on February 18.
with investors on February 18. A final investment decision (FID) on Obsk
Novatek has previously discussed building LNG is still pending. Novatek had hoped to clear
a three-train plant capable of producing 4.8mn this milestone last year, but delayed the move in
tonnes per year (tpy) of LNG. But Obsk LNG’s light of the coronavirus (COVID-19) pandemic.
maximum capacity could be increased by Novatek CFO Mark Gyetvay said recently that an
20-25%, Mikhelson said. FID would be taken on Obsk LNG this year, and
“We are presently in the front-end engi- that the plant would likely start up in 2024. How-
neering design (FEED) stage of the workload, ever, Mikhelson seemed to suggest otherwise.
and we are now considering the possibility to It will take up to a year and a half to assess
increase the design capacity of the facility,” the Arctic Cascade’s efficiency at the fourth Yamal
CEO explained. “We have always been consist- LNG train, Mikhelson said, and only after that
ent in realising our projects, and we want to be assessment is complete will the company be able
certain that we have considered the right design to decide what capacity Obsk LNG should have.
parameters.” “I think that this line needs to work for a year
Obsk LNG will employ Novatek’s proprie- or a year and a half so that we understand the
tary Arctic Cascade liquefaction technology, economy and further consider scaling issues,” he
which will be used for the first time at the fourth, told investors.
Russia’s Norilsk Nickel to convert
mining gear to run on LNG
PROJECTS & RUSSIAN mining giant Norilsk Nickel has environmental, social and governance (ESG)
COMPANIES announced plans to produce LNG and convert score after causing Russia’s worst Arctic fuel spill
some of its heavy mining equipment to run on in May last year. Russian regulators at the start
the fuel in addition to diesel. of this month fined the company $2bn for the
The company said in a statement earlier incident, which involved the leakage of 21,000
this month that the project would significantly tonnes of diesel into rivers and subsoil near
reduce its emissions of CO and CO2, NOX and Norilsk in north-west Siberia.
SOX. The pilot stage will involve re-equipping Norilsk Nickel’s efforts to overcome this tar-
dump trucks to run on both LNG and diesel. nish on its reputation were undermined this
Trial operations are scheduled to start in the sec- week, when three workers died on February
ond half of this year. Four BelAZ trucks will be 20 after an Arctic enrichment processing plant
the first to undergo upgrades. owned by the company partially collapsed. The
During the trials, Norilsk Nickel will assess ageing plant was undergoing renovations at the
whether it is possible to replace 40% of the time of the accident.
trucks’ fuel consumption with LNG. It will then “We take full responsibility for the tragic acci-
decide whether to re-equip the entire 30-strong dent and are doing everything we can to support
fleet of trucks that currently operate at the Zapol- the victims and their families at this difficult
yarny copper mine. time,” Norilsk Nickel CEO Vladimir Potanin
Construction of an LNG plant to provide the said in a statement. “The accident happened
fuel is expected to take place between January overnight, due to a severe violation of the safety
2022 and March 2023, the company said. rules. Nornickel has always treated industrial
LNG is seen as a potential solution for reduc- safety as its highest priority. We are undertaking
ing the emissions of remote industrial facilities a full review and are focused on strengthening
such as mines. Norilsk Nickel has access to its our safety efforts even further.”
own gas fields which could be used to produce Earlier, the company pledged to spend
the super-cooled fuel. RUB100bn ($1.35bn) over the next five years on
Norilsk Nickel is struggling to improve its improving industrial safety measures.
Week 08 26•February•2021 www. NEWSBASE .com P9
