Page 11 - GLNG Week 09
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Gazprom is in the process of deploying the Kovy- kta gas deposit in Eastern Siberia.
About a third, or 250 bcm Russian gas production was exported last year. Exports increased by almost 6% as LNG exports almost doubled. Exports of pipeline gas remained almost unchanged.
Russia’s LNG production is mainly export-oriented, with LNG accounting for 15% of exports last year. According to the Janu- ary-September statistics, almost 70% of Russian gas exports went to EU countries and 15% to CIS countries. China accounted for just under 1% of
exports. Russia’s gas exports last year amounted to $50bn (3% of GDP).
In its February forecast, the Russian Ministry of Finance expects gas exports to grow by a few% over the next few years. A gas pipeline to China was opened in December and deliveries are set to increase gradually.
According to preliminary plans, about 5 bcm of pipeline gas will be delivered to China this year and 10 bcm next year. However, due to the severe coronavirus epidemic in China, Chinese gas demand may remain below expectations.
MIDDLE EAST
FID on Qatari LNG expansion unlikely this year: Rystad
PROJECTS & COMPANIES
QATAR is unlikely to sanction the expansion of its giant North Field LNG project this year, Oslo- based Rystad Energy said in a recent research note, in light of the collapse in gas prices.
The world’s top LNG exporter plans to raise its liquefaction capacity from 77mn tonnes per year at present to 126mn tpy by 2027, According to Rystad, this project is likely to cost more than $50bn in greenfield investments at the North Field.
Qatar had planned to take a final investment decision (FID) on the project’s first $35bn stage this year, but Rystad does not expect this mile- stone to be reached until the first half of 2021. Its operator Qatar Petroleum is now re-evalu- ating the expansion’s commercial outlook, the consultancy said, owing to low gas prices. The commercial bid deadline for the liquefaction facilities had also been extended to the second quarter of 2020.
“Given the anticipated delays in formal sanc- tioning of the project, Rystad Energy has low- ered its total forecast for capital expenditure in the Middle East, predicting about $21.3bn of
investments will get the go-ahead in the region this year, versus the previous estimate of more than $56bn,” Rystad said.
The expansion’s first phase comprises con- tracts for associated onshore liquefaction and storage facilities. Contractors are to be sought for building four LNG trains, utilities and offsite facilities, a helium recovery unit, non-technical buildings, warehouses, workshops, and associ- ated facilities. Qatar is likely to take an FID on the second stage of the expansion in 2023, at the earliest.
The global LNG market was oversupplied last year as a result of lacklustre gas demand in Asia and a surge in LNG production in the US and other countries. Making matters worse for pro- ducers, the coronavirus outbreak has resulted in weaker gas demand in China, the world’s biggest LNG importer.
Rystad also expects FIDs this year on $12.5bn of gas projects in the UAE, and the delayed Zuluf oilfield expansion in Saudi Arabia, which is tar- geting around 5bn barrels of oil equivalent and is slated to cost $10bn.
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