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equipment that needs to be localized, we think, are turbines for both electricity generation at the project as well as for compressors of the liquefaction equipment.
Typically imported from foreign providers like Siemens, GE, or Rolls Royce, high-capacity turbines are essentially large jet engines, of which Russia produces no analogue. Smaller, locally-produced turbines can perhaps serve as a substitute, but that would likely require some delicate engineering to accomplish.
As the three Arctic LNG-2 trains are being built on gravity-based structures (large concrete barges), there is a natural space constraint that may make more difficult to achieve such an engineering solution than it typically would be. Still, it appears increasingly likely that Arctic LNG-2 will indeed be eventually finished, although we think the original schedule (especially for Train-2 and Train-3) may be pushed back by a year or two.
The output of liquefied natural gas (LNG) of Russian independent gas company Novatek’s Yamal LNG facility is expected to increase to 21mn tonnes in 2022, CEO and core owner Leonid Mikhelson told reporters at the Russian Energy Week forum on October 13. In 2021, the plant’s output amounted to 19.6mn tonnes.
Mikhelson said that the construction of the Arctic LNG-2 plant continues, and is planned to be finished in line with the schedule, and that all sanctions-linked problems of the construction have been settled.
Novatek plans that the next LNG project to implement will be the Obsky LNG, the CEO said. Mikhelson also said that the Arctic LNG-1 project can be the next.
“This and last year we have sent around 40–41bn rubles to investment and geological survey operations. We are mainly focused on the Gydan deposit, the Achim deposits. We have had the southern part of the reserves in the area of Geofizicheskoye, and are preforming exploration at the eastern part, which is going to become Arctic LNG-1’s resource base,” he said.
The output of natural gas of Russia’s Novatek increased by 4.9% on the year to 19.94bn cubic metres in July–September, the company said in a statement on Wednesday. The company’s production of liquid hydrocarbons shrank by 1.7% on the year to 3mn tonnes in the period. In January–September, Novatek’s hydrocarbon output grew by 4% to 155.6mn barrels of oil equivalent. End
BCS GM DDM-based TP for gas producer Novatek falls 17%, from Rb840/ADR to Rb700/ADR, and we maintain our rating at SELL. Novatek meets two of our the three preference criteria for Russian oil & gas stocks. On
119 RUSSIA Country Report November 2022 www.intellinews.com