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Gazprom outbids rivals for Siberian block
INVESTMENT
The Sopochny block likely had more value to Novatek, which operates
the neighbouring Geofizicheskoye gas field.
RUSSIA’S Gazprom has bested rival produc- ers Novatek and Rosneft in a state auction for a major gas block in the Yamalo-Nenets region of Western Siberia.
Gazprom paid RUB12.1bn ($196mn) for a 25-year exploration and production licence for the Sopochny block, state subsoil agency Rosne- dra revealed on January 21, versus a starting price for bids of only RUB0.38bn. It saw off com- petition for the licence from two wholly owned subsidiaries of Novatek, and Rosneft.
The Sopochny block holds 261bn cubic metres of gas and 98mn tonnes of condensate in D0-category (possible) reserves, according to Rosnedra. Only limited surveying has taken place at the site, suggesting Gazprom may have paid a significant premium.
Gazprom is eager to replenish its reserves with new discoveries in northern Russia. But the Sopochny block likely had more value to Novatek, which operates the neighbouring Geofizicheskoye gas field. Novatek wants to use Geofizicheskoye’s resources to underpin con- struction of another LNG plant, in addition to
its Yamal LNG and Arctic LNG-2 projects. Gazprom seldom pays so much for a licence, preferring to invest in exploration of its existing acreage. The last time it competed so fiercely for a licence was in 2016, when an auction was held for the Layavozhskoye and Yaneyvisskoye fields in Yamalo-Nenets, containing 82mn tonnes
(600mn barrels) of oil and 223 bcm of gas. Gazprom had little need for the fields, but nevertheless made an offer of RUB23bn ($372mn) for them to outbid Rosneft, which had wanted the resources to support its Pechora LNG venture. Without access to these fields, Rosneft axed Pechora LNG, which would have been its
first LNG export project.
Rosneft also took part in another auction
this week, acquiring upstream rights to two other blocks in Yamalo-Nenets, Mitikyakhsky-1 and West-Kharampursky. It paid RUB918mn ($290,807) for Mitikyakhsky-1, estimated to contain 19mn tonnes (139mn barrels) of oil, and RUB443mn ($7.2mn) for West-Kharam- pursky, assessed to comprise 614,000 tonnes (4.5mn barrels).™
AMERICAS
Cryopeak LNG Solutions Corporation announces first ever Super-B train trailer availability for LNG transportation
Cryopeak LNG Solutions Corporation, based in Richmond BC, said today it has developed the first-ever “Super B-train” liquefied natural gas (LNG) hauling trailer to optimise small-scale LNG transportation in Canada. The trailer is designed to be interoperable across Canada and is in full compliance with Transport Canada rules and regulations for the transportation of liquefied natural gas.
Development of the trailer is in line with Cryopeak’s business objective of providing natural gas solutions to companies and municipalities which are seeking to transition to an environmentally sustainable and
NEWS IN BRIEF
competitive fuel source.
The new Super B-train trailer is a break
though technology designed to have 70% greater capacity than standard trailers operating in Canada today.
“Our customers are seeking lower costs associated with the transportation of LNG in Canada and we are pleased to have four new Super B-train trailers entering service in the Cryopeak fleet at the beginning of 2020. This new transportation solution will improve the competitiveness of LNG as transportation costs represent often the largest cost of LNG supplied to our customers,” said Calum McClure, CEO of Cryopeak.
CRYOPEAK LNG SOLUTIONS, January 20, 2020
Baker Hughes’ profit hit
by lower orders from LNG
producers
Baker Hughes missed analysts’ estimates for quarterly profit as a result of lower orders in its business that supplies turbines and
compressors to LNG producers. The company reported net income of $128mn for 2019, down 34% compared with a net profit of $195mn in 2018. Baker Hughes’ 2019 revenue, however, rose 4% y/y to $23.8bn.
The company, which is a standalone entity once again after completing its separation from GE late last year, said orders from the turbine and compressor unit fell 10% y/y, with equipment orders dropping 16% and service orders down 4%. Demand for LNG
– and products and services related to it – is expected to decline this year amid a global oversupply of the super-chilled fuel and stagnating economic growth in Asia.
Freeport LNG Train 2 begins commercial operation
McDermott International, with its partners, Chiyoda International Corporation and Zachry Group, today announced the beginning of commercial operation of Train 2 of the Freeport LNG project, owned by
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Week 03 23•January•2020