Page 13 - GLNG Week 35

GLNG
NEWS IN BRIEF
GLNG
Final investment decision
made on Arctic LNG 2
project
Today, during the Eastern Economic Forum in Vladivostok, Novatek announced that the participants of Arctic LNG 2 approved a nal investment decision (FID) for the Arctic LNG 2 project, consisting of the development of the Utrenneye eld and the construction of a natural gas liquefaction plant on the Gydan Peninsula in the Russian Arctic region (the “Project”). e participation in the Project also provides for the long-term LNG o ake by all the participants in proportion to their respective ownership interests.
e LNG plant will consist of three (3) liquefaction trains with overall production capacity of 19.8 million tons per annum. e launch of LNG train #1 is scheduled
for 2023, with LNG trains #2 and #3 to be launched in 2024 and 2026, respectively. Capital expenditures to launch the project at full capacity is estimated at US$21.3 billion equivalent.
Arctic LNG 2 employs an innovative concept using gravity-based structures (GBS) and provides for localizing the majority of equipment manufacturing and materials fabrication in Russia. e GBS construction, assembly and installation of LNG modules will be performed at NOVATEK-Murmansk’s LNG Construction Center located near Belokamenka in the Murmansk Region.
A consortium of TechnipFMC, Saipem and NIPIGAS (Russia) was awarded the contract on engineering, procurement and construction of the LNG plant (EPC
contract), with the design and construction of gravity-based structures to be built by the Russian company SAREN, a joint venture of RHI Russia and Saipem. As of today, more than 90% of long-lead items (including cryogenic heat exchangers, gas turbines, and the compressors for the liquefaction trains) have been ordered. Drilling of production wells, construction of roads and the eld’s production infrastructure have been commenced.
NOVATEK, September 05, 2019
Turkish LNG imports hit record in first half of 2019
Data from Turkey’s Energy Market Regulatory Authority show that the country imported a record 7.14bn cubic metres of LNG in the rst half of 2019.
e country imported a total of 23.29bn cubic metres of gas in total, and the share of LNG accounted for over 30% of this for the rst time during the rst six months of this year.
Turkish LNG imports were 6.24bn cubic metres in the rst half of 2018 and 5.52bn cubic metres in the same period of 2017, accounting for 24% and 19% of total gas imports respectively.
e 2019 gure represents a 14% y/y increase for LNG imports, which grew even as overall gas imports declined. e overall gas import gure for the rst half of 2019 is a 10% decrease y/y. It has been attributed to low demand from gas- red power plants in the country, linked to a mild winter and surging renewable production.
MIDDLE EAST
Aramco taps oil-trading contacts in move into LNG
State-owned Saudi Aramco is trying to break into the LNG-trading market. To this end the company – the world’s largest oil exporter
– is turning to its contacts in oil trading.
Its rst two LNG cargoes have been sold to long-standing crude customers in South Korea and India, Bloomberg reported on September 5.
“ ey’re going to friends rst” to look for gas deals, researcher FGE’s managing director for the Middle East, said Iman Nasseri, was quoted by Bloomberg as saying. “It will be a buyers’ market for the next couple of years,
so it’s a good time for traders to get into the market.”
e news service cited sources with knowledge of the matter as saying that as well as selling cargoes to Indian Oil Corp. (IOC) and South Korea’s S-Oil, Aramco was in talks to provide a term deal to numerous buyers including Pakistan.
Saudi has also started building
a liquefaction facilities and export infrastructure in a bid to sell more LNG, as well as potentially using it domestically. Aramco has also started looking overseas, agreeing in May to a buy a 25% stake in Sempra Energy’s Texas LNG terminal.
Week 35 05•September•2019
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