Monday, June 24, 2019

Novatek News

Anadarko Approves $20 Bln Mozambique LNG Project

(File photo: Anadarko)

U.S. energy firm Anadarko Petroleum Corp gave the go-ahead on Tuesday for the construction of a $20 billion gas liquefaction and export terminal in Mozambique, the largest single LNG project approved in Africa, according to the government of Mozambique and energy consultancy Wood Mackenzie.The announcement, which occurred at an event in Mozambique, was widely expected after Anadarko last month flagged the decision date. Officials at Anadarko were not immediately available for comment.The project…

Novatek Pact with Chinese Duo on Arctic LNG 2

Image: Novatek

Russia's second largest natural gas producer, Novatek has signed share purchase agreements with two Chinese oil giants for the sale of participation interest in the Arctic LNG 2 project.Novatek announced that it has signed the Share Purchase Agreement with China National Offshore Oil Corporation (CNOOC) in relation to the sale of a 10% participation interest in the Arctic LNG 2 project.The Agreement will close in the nearest future subject to approval by regulatory authorities…

Novatek in Arctic LNG 2 Deal with TechnipFMC

Image: Novatek

Russian largest independent gas producer and liquefied natural gas (LNG) player Novatek signed a deal with TechnipFMC for its Arctic LNG 2 project.The contract was signed on engineering, procurement, supply, construction and commissioning (EPC) of an integrated liquefied natural gas facility with an annual liquefaction capacity of 19.8 million tons under the Arctic LNG 2 project, said a press release from the Russia's second largest natural gas producer.The contract terms provide for the launch of the first train of the project in 2023…

Novatek Wins New Russian Licences

Pic: Novatek

Independent Russian gas producer Novatek and LNG operator Novatek has secured the right to explore on the Krasnoyarsk Territory.Russia’s largest LNG producer said in a press release that it has obtained five new licenses on the Krasnoyarsk Territory located in close proximity to its existing licenses on the Gydan Peninsula.Novatek -Yurkharovneftegas obtained the right for geological survey licenses for the Khalmeryahskiy, Dorofeevskiy and West-Dorofeevskiy subsoil areas, while…

Novatek Sell 20% Stake in Arctic LNG 2 to China

Image: Novatek

Russian gas producer Novatek said on  that it had signed agreements with two Chinese companies to sell a combined 20 percent stake in its new liquefied natural gas project, Arctic LNG 2.Under the agreement, the Chinese firms -CNOOC and CNODC - will become shareholders in the Arctic LNG project with 10 percent each. Novatek gave no financial details in a statement announcing the agreements.According to a press release, Novatek  has signed a binding agreement to enter the Arctic LNG 2 project with China National Oil and Gas Exploration and Development Company Ltd (CNODC)…

Chinese, Russian Majors Ink Arctic LNG Deal

Photo: Sovcomflot (SCF Group)

Russia's second largest natural gas producer Novatek, Russian maritime shipping company specializing in petroleum and LNG shipping Sovcomflot, Chinese state-owned shipping and logistics services supplier company COSCO Shipping Corporation Limited, and the Chinese government owned investment fund Silk Road Fund, signed a four-party agreement to establish a joint venture Maritime Arctic Transport LLC.The focus of the Maritime Arctic Transport joint venture is to manage an icebreaking tanker fleet of Arctic ice-class vessels…

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…

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…

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

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…

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)

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.

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…

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…

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…

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.

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.