Page 148 - RusRPTJul23

● Novatek
Russian gas producer Novatek plans to construct a significant liquefied natural gas (LNG) plant in the Murmansk Region, according to sources familiar with the matter, as reported by business daily Kommersant on May 31.
The proposed LNG project would consist of three liquefaction lines, each with a capacity of 6.8mn tonnes. This would result in a total capacity of 20.4mn tonnes per year, making it a large-scale venture for the company.
According to the report, the first two liquefaction lines of the plant could be operational by the end of 2027, with the third line expected to be operational by the end of 2029. These timelines indicate Novatek's intentions to gradually complete the project in phases.
The construction of this LNG plant in the Murmansk Region aligns with Novatek's strategy of expanding its LNG production capabilities. The company is already a major player in the global LNG market, with several operational LNG projects and export facilities.
The Murmansk Region, situated in northwest Russia and adjacent to the Arctic Ocean, offers strategic advantages for Novatek's LNG operations. Its proximity to Arctic shipping routes provides easier access to international markets, particularly for LNG deliveries to Europe and Asia.
Novatek has successfully developed and operated other major LNG projects, such as the Yamal LNG plant in the Yamal Peninsula. With the potential construction of this new LNG plant in the Murmansk Region, Novatek aims to strengthen its position as a leading global LNG producer and exporter.
The demand for LNG continues to grow globally, driven by factors such as increasing energy consumption, a shift towards cleaner fuels, and the replacement of coal-fired power generation. Novatek's planned expansion aligns with this trend and positions the company to capitalize on the growing demand for LNG in the future.
As the project progresses, Novatek will likely collaborate with various partners, including international energy companies and financial institutions, to secure the necessary investments and expertise for the construction and operation of the LNG plant.
● Other
The net profit of Russian oil and gas company Surgutneftegas plummeted by 88.2% on the year to 60.73bn rubles in 2022, as calculated
148 RUSSIA Country Report July 2023 www.intellinews.com