Page 11 - FSUOGM Week 14 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom, Rusgazdobycha consider

hiring Linde for Ust-Luga complex

RUSSIA RUSSIA’S Gazprom and Rusgazdobycha now how this will affect the project’s scope. News-
want to hire Germany’s Linde to work on a gas Base understands that an EPSS contract typi-
The partners scrapped processing and LNG complex on the Baltic Sea, cally constitutes around 60% of the value of an
a contract earlier to after cancelling a contract last month issued to EPC contract, as awarded to Nipigaz. Therefore
Russia's Nipigaz. Russian firm Nipigaz. the cost saving is not as significant as it might
Gazprom reported in late March that it had first appear.
agreed terms with Linde on an engineering, pro- The Ust-Luga development involves the con-
curement and site services (EPSS) contract for struction of a hub capable of annually processing
the Ust-Luga facilities. The letter of intent (LoI) 45bn cubic metres of natural gas into 19 bcm per
signed by the pair “outlines the main terms and year of treated gas, which will be exported via the
conditions of a prospective EPSS contract pro- Nord Stream 2 pipeline, along with 13mn tonnes
viding for engineering services, equipment sup- of LNG, 3.6mn tonnes of ethane and more than
plies, and maintenance of gas processing and 2.2mn tonnes of LPG. Ethane from the project
offsite facilities,” Gazprom said. will be supplied to a nearby petrochemical plant
The Russian gas supplier said last month it that Rusgazdobycha plans to erect on its own.
had mutually agreed with Nipigaz on the can- Gazprom has been working on plans for liq-
cellation of an engineering, procurement and uefaction facilities in north-west Russia for over
construction (EPC) contract for the facilities, a decade. It originally wanted to build a 10mn
in order to optimise costs. The Russian press tonne per year (tpy) LNG terminal with Royal
claimed Nipigaz had failed to meet project dead- Dutch Shell. But the international oil major
lines, while the contractor itself, a subsidiary of left the venture in April 2019 after Gazprom
petrochemicals group Sibur, said Gazprom and expanded its scope to include processing facil-
Rusgazdobycha had not decided yet how to ities and brought on board Rusgazdobycha as a
finance the scheme. partner.
The value of the contract with Nipigaz was Rusgazdobycha separately reported on April
€10bn ($11.8bn), but Gazprom is looking to 2 that the Ust-Luga project had received a con-
offer Linde a deal worth only €5bn. It is unclear struction contract from authorities. ™

Gazprom wins Yamal gas licence

RUSSIA RUSSIA’S state-owned Gazprom has won a Gazprom’s largest gas projects, which is under-
licence to explore and develop the Vostoch- going an expansion to take its output to 115 bcm.
Gazprom and Novate no-Bovanenkovsky block on the Yamal Penin- It is also situated next to the Verkhnetiuteyskoye
are scrambling to build sula, the country’s natural resources ministry and Zapadno-Seyakhinskoye fields controlled
up their resource bases reported on March 30. by Novatek’s Obsky LNG subsidiary, and the
in the Arctic. The company paid RUB386mn ($5mn) for Malotambeysky licence area held by a company
the licence after winning a state-held auction. called Novokhim.
The starting price for bids in that contest was Both Gazprom and Novatek are scrambling
RUB297mn, and offers were also submitted by to build up their resource base in the Arctic. The
Novatek subsidiaries Arctic LNG-1 and Obsky former wants to develop new fields to replace
LNG, according to the ministry. depleting ones that serve the European market,
The Vostochno-Bovanenkovsky block as well as supply China via the planned Power of
contains some 19.2bn cubic metres of gas Siberia 2 pipeline through Mongolia. Novatek,
in C1+C2 resources, plus 331.1 bcm of gas, on the other hand, wants to underpin new lique-
5.8mn tonnes (42.5mn barrels) of oil and faction projects in the Arctic.
21.7mn tonnes of condensate in D1-category In late March Novatek also won rights
resources. Its D2 resources are assessed at 36.8 to a new block in the Russian Arctic. It paid
bcm of gas, 23.2mn tonnes of oil and 9.3mn RUB775mn ($10.2mn) for a 30-year licence
tonnes of condensate. for the Severo-Gydansky block, situated on the
The 3,200-square km licence area lies adja- Gydan Peninsula east of Yamal, after winning an
cent to the Bovanenkovskoye field, one of auction. ™

Week 14 07•April•2021 www. NEWSBASE .com P11