Tuesday, April 23, 2019

Novatek News

Total to Invest in Novateks LNG Projects

Pic: Novatek

The French oil giant Total intends to buy 10% shares of the transshipment points of liquefied natural gas in Murmansk and Kamchatka, which Novatek plans to build.Russian news agency TASS quoted the CEO of the French company Patrick Pouyanne as saying: "We have just announced that we are investing in Arctic LNG 2, but we are also investing in terminals in Murmansk as well as in Kamchatka. This is part of our agreement with Novatek. To develop Arctic LNG 2, we need two hubs — one in Murmansk, the other in Kamchatka.

Lebanon Announces Offshore Blocks

© bilalulker / Adobe Stock

Lebanon announced on Friday five offshore blocks to be included in its coming bidding round for energy exploration and production licences, including four along disputed maritime borders.Offshore energy development has been a central ambition for successive governments in cash-strapped Lebanon, but political paralysis has caused years of delays.Blocks 8 and 10 both include waters also claimed by Israel, while blocks 1 and 2 include waters claimed by Syria. One of the two blocks for which licences were awarded last year…

Novatek, Repsol Pact for Arctic LNG 2

Image: Novatek

Russia's second largest natural gas producer Novatek said that its trading subsidiary Novatek Gas&Power Asia and Spanish energy company Repsol  have agreed to a 15-year contract to supply 1 mtpa of LNG from the Arctic LNG 2 project and other projects.The LNG will be delivered ex-ship primarily to markets on the Iberian Peninsula, said a release from Novatek.“The agreement for the sale of LNG would allow us to increase our market presence on the Iberian Peninsula where Russian pipeline gas is not supplied…

Vitol, Novatek Sign LNG Deal for Arctic 2 Plant

Pic: Novatek

Novatek Gas & Power Asia, a trading unit of Russia’s largest independent natural gas producer and LNG operator, Novatek, signed a heads of agreement with British energy and commodity trading company Vitol for the supply of LNG from the Arctic LNG 2 project.The Agreement envisages concluding a 15-year contract with annual supply of one million tons of LNG from the Arctic LNG 2 project as well as other Novatek’s projects.The LNG will be shipped on FOB basis to Novatek’s transshipment terminals in the Murmansk region and Kamchatka…

Russia: New Port of Sabetta LNG Terminal

Russian President Vladimir Putin ordered an allocation of budget funds in 2021-2022 for the construction of the Utrenny liquefied natural gas (LNG) terminal in the Russian port of Sabetta on the Northern Sea route, the Kremlin said on its website.The budget money will also be used to reconstruct a navigable channel in the Gulf of Ob in the Kara Sea.The Utrennee gas field is developed by Russian gas giant Novatek and serves as a resource base for the Arctic LNG-2 project. (Reuters, Reporting by Andrey Kuzmin Writing by Polina Nikolskaya Editing by Andrey Kuzmin and Emelia Sithole-Matarise)

Total Buys 10% Stake in Arctic LNG 2

(Photo: Novatek)

Total has agreed to buy a 10 percent stake in the Arctic LNG 2 project from Russia's Novatek, as the French energy group looks to build up its presence in the area to service a fast-growing Asian market.The companies said on Tuesday Total would also have the opportunity to buy a 10-15 percent direct interest in all Novatek's future LNG projects on the Yamal and Gydan peninsulas.Novatek said that, as well as paying for the 10 percent stake, Total would provide some financing through capital investment for Arctic LNG 2, adding it expected preliminary capex for the project to be $20-21 billion."A

Purovsky Reaches 80mt Processed

Pic: Novatek

Russia's largest independent natural gas producer Novatek announced that its Purovsky Plant has cumulatively processed 80 million tons since the facilities start-up in June 2005.The Purovsky Plant processes de-ethanized (unstable) gas condensate produced at the fields of Novatek and its joint ventures into stable gas condensate and natural gas liquids.The Purovsky Plant is the central element in Novatek’s vertically integrated value chain providing the Company with complete operational…

Arctic LNG 2, Siemens Sign Deal

Pic: Novatek

Russian gas producer Novatek said that it had signed a deal with German tech giant Siemens to buy compressors for its new Arctic LNG 2 natural gas liquefaction plant.Novatek's second LNG export facility after Yamal LNG, the 19.8 million mt/year Arctic LNG-2 project is moving closer to the reality after this deal.The scope of supply under the contract includes three feed gas compressors and six boil-off gas compressors. The document also provides for localizing the equipment fabrication…

Glengorm Discovery Highlights UKCS Potential

Topsides being installed in 2018 at the Culzean field (Photo: Total)

CNOOC announced Tuesday it has made a significant discovery on the Glengorm prospect, located in the Central North Sea of the U.K. continental shelf (UKCS), with recoverable resources estimated at close to 250 million barrels of oil equivalent.The exploration well was drilled in License P2215 in approximately 86 meters water depth to a total depth of 5,056 meters and encountered 37 meters net gas and condensate pay zones in an Upper Jurassic reservoir.Kevin Swann, a senior analyst with Wood Mackenzie’s North Sea upstream team, said Glengorm is the largest gas discovery in the U.K.

Russia's Novatek Sees LNG from U.S. as its Threat

© FotoKieltyka.pl / Adobe Stock

Leonid Mikhelson, the head of Russia's Novatek said on Friday that liquefied natural gas (LNG) from the United States as its chief threat, Interfax news agency reported.He said, according to Interfax, that LNG production in the U.S. enjoys cheap financing, while LNG production in Russia has a competitive edge thanks to its low production costs.Qatar is the world's biggest LNG producer.Energy companies are flooding Europe with U.S.

Gazprom Neft Considering Arctic LNG Production

Novoport field (Photo: Gazprom Neft)

Gazprom Neft, the oil arm of Russian gas giant Gazprom, is studying the possibility of its own liquefied natural gas (LNG) production in the Arctic as it tries to monetize its vast natural gas reserves.The discussions follow the successful launch of the Arctic-based Yamal LNG plant, controlled by Novatek, in December 2017.

Russia: Japan's Mitsubishi Interested in Arctic LNG 2 Project

Photo courtesy of Total

Russia's energy ministry said on Monday that Japan's Mitsubishi Corp has expressed interest in participation in the Arctic LNG 2 project, which is due to start producing liquefied natural gas in the next decade.Novatek owns a 90 percent stake in the project, with France's Total holding the other 10 percent. Novatek intends to keep a 60 percent stake in Arctic LNG 2, offering 30 percent to other investors.Energy ministry officials have met representatives from Mitsubishi, the ministry said without elaborating.Last month two sources said that Mitsui…

Novatek Production Rose 6.9% in 2018

Pic: Novatek

Russia's largest independent natural gas producer Novatek said that total hydrocarbon production during 2018 increased by 6.9%, and had increased sales of gas."In 2018, Novatek’s hydrocarbon production totaled 548.4 million barrels of oil equivalent (boe), including 68.81 billion cubic meters (bcm) of natural gas and 11,800 thousand tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons produced by 35.1 million boe, or by 6.9% as compared with the twelve months 2017…

PetroChina Boosts European LNG Activity with Yamal Cargoes

Photo courtesy of PetroChina

China's top oil and gas company PetroChina is selling spot liquefied natural gas (LNG) cargoes on the European market from Russia's Yamal plant, adding to a flood of volumes to the continent amid subdued Asian demand, trade sources said.PetroChina's increased presence in Europe is an example of how Asian energy companies are expanding their role as LNG traders, engaging in LNG transactions globally.The early start-up of Yamal LNG's second and third trains, or production lines…

Record LNG Capacity to Get Green Light in 2019

(File photo: Novatek)

A record amount of liquefied natural gas (LNG) production is expected to get the green light in 2019 amid strong global demand, especially from China, analysts said.A final investment decision (FID) could be taken on more than 60 million tonnes per annum of LNG capacity this year, well above the previous record of about 45 million tonnes in 2005 and triple last year's 21 million tonnes, Wood Mackenzie's research director for global gas and LNG, Giles Farrer, said.The new capacity would bulk out the pipeline of gas set to come on stream in coming years…

Novatek, Saibu Gas Ink MoU

Image: Novatek

Russia's largest independent natural gas producer Novatek said it had agreed with Japan's Saibu Gas to study the possibility for the Russian company to enter the Japanese energy market.Novatek said in a press release that PAO Novatek and Saibu Gas Co Ltd signed a  Memorandum of Understanding (MOU), whereby the parties agreed to consider potential cooperation to enter the end-customer market and optimize Novatek’s LNG portfolio supplies to the Asia-Pacific region by utilizing Hibiki…

Oil Production Starts at Yaro-Yakhinskoye

(File photo: NOVATEK)

PAO NOVATEK announced Thursday that commercial crude production has begun at the Yaro-Yakhinskoye field developed by Arcticgas, a joint venture between NOVATEK and Gazprom Neft.The field’s crude oil production capacity is estimated at 1.2 million tons per annum.NOVATEK’s Chairman of the Management Board Leonid Mikhelson said, “The launch of the crude oil program at Arctigas’ Yaro-Yakhinskoye field will make a significant contribution to the company's liquids production growth.”To start crude oil production…

Arctic LNG 2 to Buy Nuovo Pignone Turbines

Russia's largest independent natural gas producer PAO Novatek announced that its next LNG project, Arctic LNG 2 and Nuovo Pignone (Italy) signed an agreement on turbo machinery equipment.The the seventh largest publicly traded company globally by natural gas production volume said in a press release that the agreement provides for the supply of gas turbine compressors and gas turbine generators for the three liquefaction trains for the Arctic LNG 2 project.“Our partnership with…

Russian Novatek, Italian SACE in LNG Pact

Image: Novatek

Russian gas giant Novatek and SACE SIMEST, the Italian export credit company part of CDP Group, have finalized an agreement on strategic cooperation in the liquefied natural gas (LNG) projects, including Arctic LNG 2."PAO Novatek and SACE signed a Memorandum on Strategic Cooperation in relation to the Company's current and future LNG projects. The parties agreed to develop long-term cooperation on the Arctic LNG 2 project and potential new LNG projects involving Italian suppliers and engineering companies…

Italy's Saipem Strikes Deal with Turkish Renaissance for Arctic LNG-2

Image: Saipem

Italian oil and gas industry contractor Saipem and Turkey's Ronesans signed a joint venture (JV) agreement for infrastructure construction for Russian Federation's Arctic LNG-2 project.Saipem said the contract for the construction of the project is worth EUR 2.2 billion (USD 2.5 billion).As leader of the JV, with a shareholding of 50%, Saipem’s portion of the total amount is therefore approximately 1.1 billion Euro, it said.The contract has been awarded by the company Artic LNG 2…