Page 10 - GLNG Week 32 2021

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Russia weighs up LNG options for Kamchatka
PROJECTS & COMPANIES
RUSSIA is looking to provide LNG to remote areas in the Far Eastern region of Kamchatka, although it is yet to arrange where the gas will come from, Kommersant reported on August 9.
The original plan was for Novatek, owner of the 17mn tonne-per-year Yamal LNG plant, to supply the gas. But according to Kommersant, the company has said it does not have the spare volumes. The government has proposed that Gazprom should provide a portion of the 2.9mn tonnes per year of LNG that it buys from Yamal LNG but those volumes have been booked under a long-term contract with Indian LNG importer Gail.
Gazprom has therefore suggested to the gov- ernment that the gas could be obtained from Arctic LNG-2, Novatek’s second liquefaction plant which it aims to launch in 2023. The latter company is, however, reluctant to do so, because of the low gas prices in Kamchatka, where it is constructing an LNG transhipment terminal.
Initially, it was proposed that boil-off gas gener- ated at this terminal would be supplied to Pet- ropavlosk-Kamchatksky, although this would have required the construction of a 140-km pipeline at a cost of RUB120bn ($1.6bn), which was considered unacceptable, Kommersant said.
The government had considered using budget funds to cover this expense, while also covering the loss that Gazprom incurs on gas sales in Kamchatka. The plan is to convert boilers in the region from fuel oil to cheaper natural gas, but heating tariffs in Kamchatka are subsidised and the energy ministry has concluded that it would be impossible to make a return on the necessary investments.
Russia is preparing to embark on a $25bn, 10-year gasification programme, which it hopes to finalise by the end of the year. The aim of the programme is to increase energy access, reduce energy costs and cut emissions by replacing fuel oil and coal with cleaner gas.™
Russia to auction five Yamal blocks in September
PROJECTS & COMPANIES
RUSSIAN subsoil licensing agency Rosnedra plans to auction off rights for five more oil and gas blocks on the Yamal Peninsula in the Arctic on September 21, the PRIME news agency has reported. The blocks in question are referred to as Kharayegansky, Khoshgortyegansky, Logastyegansky, Vostochno-Kharaveysky and Vostochno-Maliginsky.
The block that is on offer for the highest initial price is Vostochno-Kharasaveysky, at RUB957.3mn ($13.1mn). That site boasts 24.1mn tonnes (177mn barrels) of oil in D1+D2 resources, plus 409bn cubic metres (bcm) of nat- ural gas. It lies adjacent to licences held by Gaz- prom and Novatek, the main developers on the Yamal Peninsula.
In second place is Vostochno-Maliginsky, which has 31mn tonnes of oil, 3.4mn tonnes of condensate and 332 bcm of gas in D1+D2 resources. It is going for a minimum price of RUB487.2mn. In third place, Logastyegansky will go for RUB245.3mn. It contains 127mn tonnes of oil, 2.4mn tonnes of condensate and 12.1 bcm of gas in D1+D2 reserves.
Kharayegansky holds 32.6mn tonnes of oil, 0.62mn tonnes (5.6mn barrels) of condensate and 19.1 bcm of natural gas in D1+D2 reserves.
It will be offered to bidders at a starting price of RUB68.8mn. Khoshgortyegansky has 21.7mn tonnes of oil, 0.7mn tonnes of condensate and 19.5 bcm of gas in D1+D2 reserves, and will be offered at an initial price of RUB51mn.
Gazprom and Novatek are the two main play- ers operating on the mostly gas-prone Yamal Peninsula. The largest field on the peninsula is the Gazprom-led Bovanenkovskoye field that delivers gas to Europe via pipeline. Also situated there is the Utrenneye field, used by Novatek to supply feedstock for its 17mn tonne-per-year Yamal LNG plant.™
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w w w . N E W S B A S E . c o m Week 32 13•August•2021