Page 13 - FSUOGM Week 21 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom starts work on $13bn

Baltic gas complex

RUSSIA RUSSIA’S Gazprom has formally started con- large. Advanced processing is the most efficient
struction on a major gas processing and LNG way to maximise the potential of the immense
Concerns of possible complex at the Baltic Sea port of Ust-Luga. reserves of ethane-containing gas in Russia.”
delays were sparked The project, a joint venture between Gaz- The Ust-Luga complex is on track to com-
after Gazprom switched prom and a private Russian partner RusGazDo- mence operations in 2023-2024 and will initially
contractor earlier this bycha, is poised to become Russia’s largest gas use gas from Gazprom’s fields in the Nadym-
year. processing facility and one of the world’s biggest Pur-Taz region of Western Siberia. Starting in
in terms of production volumes. At full capacity 2026, however, it will receive gas from the Tam-
it will process up to 45bn cubic metres per year beyskoye field on the Yamal Peninsula. This is
of ethane-rich Siberian gas, producing 18 bcm despite Novatek CEO Leonid Mikhelson report-
per year of treated gas for export to Europe via edly convincing Russian President Vladimir
the Nord Stream 2 pipeline and 13mn tonnes Putin in a recent meeting to let his company
per year (tpy) of LNG. It will also supply the have rights to Tambeyskoye to underpin an LNG
separated ethane to a gas chemical complex project.
that RusGazDobycha is developing in its own, Concerns of possible delays at the Ust-Luga
also in Ust-Luga, in order to produce 3mn tpy complex were sparked after Gazprom scrapped
of polymers. an engineering contract awarded for its process-
The $13bn project is part of Gazprom’s ing facilities to Nipigaz, a subsidiary of Russian
strategy of expanding processing, LNG and petrochemicals group Sibur. Gazprom said it
petrochemicals, in order to add value to its gas had taken the decision to optimise costs, while
resources. Nipigaz said the Russian gas company had not
“We have launched the construction of a decided how to finance the scheme or how
fundamentally new and high-tech industrial much of its equipment should be localised. It
cluster here in the north-western part of Russia,” also pointed to “discrepancies” in the project’s
Gazprom CEO Alexey Miller said at a ceremony risk assessment.
that was also attended by Russian Deputy Energy Gazprom went on to agree terms for a con-
Minister Alexander Novak and other officials. tract for the Ust-Luga facilities with Germany’s
“It is essential for the region and the country at Linde.™

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