Page 8 - GLNG Week 49 2021

GLNG ASIA GLNG

Novatek eyes new Asian opportunities

PROJECTS & RUSSIA’S Novatek has signed two deals to in the Southeast Asian nation.
COMPANIES expand its inroads into the Asian natural gas “Parties to the agreement intend to co-oper-
market. ate on LNG infrastructure projects with the view
The operator of the Yamal LNG terminal to meeting the growing demand for electricity in
in the Russian Arctic on November 30 signed Vietnam,” Novatek said. Establishing a
an agreement with Japan’s Saibu Gas on LNG Vietnam has plans for a number of LNG-to-
transshipment and supply to the Chinese city power projects to keep up with growing domes- presence in newly
gas company Zhejiang Hangjiaxin Clean Energy tic power demand and facilitate the phase-out of
Co. Under the deal, Novatek will deliver the LNG coal-fired power. But it has had difficulty getting emerging LNG
to Saibu’s Hibiki LNG terminal in Japan. The gas these projects off the ground because of regula-
will then be taken by Zhejiang Hangjiaxi and tory uncertainty and insufficiently favourable markets in Asia
sent to the Jiaxing LNG terminal it is building investment conditions. will be key for
in China. Novatek made its interest in the Vietnamese
The deliveries are scheduled to start in 2024, LNG market known in August, when it opened the company to
coinciding with the launch of Novatek’s second an office in Hanoi. Establishing a presence in
liquefaction terminal Arctic LNG-2. The gas will newly emerging LNG markets in Asia will be realise its growth
be delivered on board medium-sized LNG carri- key for the company to realise its growth plans,
ers, Saibu Gas said, without disclosing details on which call for the development of up to 70mn plans.
volumes and prices. tonnes per year (tpy) of LNG by the end of the
Novatek is developing its own transhipment decade. Here it will face competition from
terminal to facilitate deliveries to Asia on Russia’s other major exporters in Australia, Qatar and
Far East peninsula of Kamchatka. the US.
The company is meanwhile looking to cor- “Vietnam’s electricity consumption has been
ner a share of the nascent LNG market in Viet- growing at an average annual rate of 10% over
nam. It signed a co-operation agreement on the past 10 years, and Novatek is ready to meet
December 2 with Vietnam’s PetroVietnam on this growing market’s needs,” Novatek CEO
developing potential LNG and power projects Leonid Mikhelson said in a statement.™

P8 www. NEWSBASE .com Week 49 10•December•2021