Monday, October 21, 2019

Yamal Lng News

Novatek in Talks on LNG Transhipment

Photo: Novatek

Russia's liquefied natural gas (LNG) producer Novatek is in talks to tranship its Yamal cargoes in Norway or Russia's Murmansk because it is unsure of the impact of U.S. sanctions on the Chinese COSCO tankers it uses, a Novatek official said.The United States imposed sanctions on Sept. 25 on state-owned COSCO's subsidiaries, COSCO Shipping Tanker (Dalian) Co and COSCO Shipping Tanker (Dalian) Seaman & Ship Management, for allegedly ferrying Iranian crude.U.S.-listed ship owner Teekay LNG said last week its shipping joint venture in Russia, Yamal LNG, had been "blocked" by the U.S.

Yamal LNG Increases Asia-Pacific Shipments Via NSR

Image: Novatek

Russia’s largest independent natural gas producer Novatek said that its operated Yamal LNG project has shipped 15 cargoes of liquefied natural gas (LNG) to Asia-Pacific markets directly via the Northern Sea Route (NSR) during 3Q19.The eastbound shipments represented about 25% of all LNG dispatched from Yamal LNG during the quarter. Planned 2019 volumes of LNG delivered eastbound to the Asian Pacific markets via the NSR will be increased by more than 4 times compared to last year.A current fleet of 13 Arc7 ice-class tankers along with lower…

Japanese Backers for Novatek's LNG Complexes

Image: Novatek

Russia’s largest independent natural gas producer and LNG project operator Novatek has formed ties with Japan's shipper Mitsui O.S.K. Lines (MOL) and Japan Bank for International Cooperation (JBIC) to collaborate on liquefied natural gas (LNG) projects.The three companies will implement projects for construction of a marine LNG transshipment complexes in Kamchatka Territory and Murmansk Region, including possible acquisition of participation interest in projects and potential financing of projects.“We have already started successful cooperation with Japanese companies in large LNG projects…

McDermott JV Bags Arctic LNG-2 Deal

Image: Mcdermott Wuchuan

Engineering services firm McDermott International announced that its joint venture Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd (QMW) in Qingdao, China, has been awarded a contract to provide three complex modules for the Arctic LNG 2 Project in the Yamal-Nenets Autonomous Region in Russia.McDermott defines a large contract as between $50 million and $250 million. The designation refers to McDermott’s share of the award via its joint venture."This award recognizes QMW's experience and excellent performance in the Arctic on an earlier Yamal LNG project. It is further evidence that QMW is a tier one module fabricator in the LNG market.

Green Light for Arctic LNG 2

Image: Novatek

The $21.3 billion Arctic liquefied natural gas (LNG)-2 project on the Gydan Peninsula headed by the Russian largest independent natural gas producer Novatek won a green light on Thursday.The project will have a production capacity of 19.8 million tons per year (Mt/y) and is expected to export its first LNG cargo by 2023, the second and third train to start up by 2024 and 2026.Total has a direct 10% interest in Arctic LNG 2 alongside Novatek (60%), CNOOC (10%), CNPC (10%) and a Mitsui-Jogmec consortium, Japan Arctic LNG (10%). Total also owns an 11.6% indirect participation in the project through its 19.4% stake in Novatek…

Vladimir Rusanov Opens Northern Sea Route

Image: PAO Novatek

Russian natural gas producer Novatek announced that the Arc7 ice-class LNG tanker 'Vladimir Rusanov' completed the Northern Sea Route (NSR) passage via the Eastern direction, delivering an LNG cargo from the Yamal LNG project, at the port of Sabetta, to China's port of Tianjin.The 168,560 cbm vessel shipped transited the ice-covered part of the route in only 6days, setting a new record for independent passage via the NSR without ice-breaking support with cargo on board.The net voyage time from Sabetta to the destination port was completed in a record 16 days…

TechnipFMC Wins $7.6 Bln Contract

(Image: Novatek)

Oil services company TechnipFMC won a $7.6 billion contract with Russia's Novatek and its partners for the Arctic 2 liquefied natural gas project in western Siberia, pushing TechnipFMC's shares higher.TechnipFMC's Paris-listed shares rose 3.2% in early session trading, as analysts welcomed the new contract.TechnipFMC said the consolidated value of the contract to it for Arctic LNG-2 was $7.6 billion and consisted of three LNG trains, each with a capacity of 6.6 million tons per annum (Mtpa)."TechnipFMC's announcement of the award of the $7.6 billion award for the 3-train Arctic LNG 2 project will…

Last Yamal LNG Arctic Ships on Sea Trials

Arctic Firsts: Arc 7 LNG carriers, including the Risunok and the ice-breaking Christophe de Margerie (pictured here). (Photo Courtesy: Yamal LNG and Sovcomflot)

The last of 15 Arc7-classed tankers ordered for the liquefied natural gas (LNG) production plant Yamal LNG in Russia's Arctic north are undergoing sea trials around a South Korean shipyard, Refinitiv Eikon shipping data showed on Monday.The Georgiy Ushakov and Yakov Gakkel LNG tankers are both in water at the Daewoo Shipbuilding and Marine Engineering (DSME) Okpo shipyard in South Korea and indicating they are performing sea trials, the data showed. The Vladimir Voronin, meanwhile, finished its sea trials and has left the Sea of Japan, setting Yamal LNG as its destination.

Novatek Signs LNG Equipment Deal

Image: Novatek

The Russian natural-gas company Novatek and Atomenergomash, a mechanical engineering division of the Rosatom State Corporation, have signed a memorandum on strategic partnership and localizing the fabrication of critical equipment for liquefied natural gas (LNG) production.Novatek said that under the memorandum, the two companies will cooperate in the long term to localize the fabrication of pumps, heat exchangers and other equipment for Novatek's LNG projects at Atomenergomash's facilities.The Memorandum notes the results already achieved on the fabrication of coil-wound heat exchangers and medium-tonnage cryogenic pumps…

Mitsui, JOGMEC join Arctic LNG-2

Image of LNG Plant: Novatek

Japanese trading house Mitsui & Co and state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) have signed a sales and purchase agreement with Russia’s Novatek for a 10% participation interest in the Arctic LNG 2 project.The share will be acquired through the Dutch Company, Japan Arctic LNG B.V., in which Mitsui has invested jointly with JOGMEC. The equity ratio of JOGMEC and Mitsui will be set at 75 percent and 25 percent respectively.The project will develop natural gas and liquefaction facilities with a production capacity of 19.8 million tonnes per year from the conventional onshore gas field located on the Gydan Peninsula within the Arctic Circle…

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, comprising existing and new vessels…

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, said the release.“The team…

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)…

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 for the Project’s third train in Russia.“Siemens and Novatek…

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.

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," said a press release from the oil-and-gas company.Preliminary natural gas sales volumes…

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, in 2018 raised spot volumes from Russia and helped PetroChina boost its European market presence…

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 LNG terminal in Japan.Novatek's First Deputy Chairman of the Management Board Lev Feodosyev noted “The Asia-Pacific region is a priority destination for Novatek's LNG projects.

Prelude FLNG Starts Production in Australia

(Photo: Shell)

Royal Dutch Shell said on Wednesday it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia, the world's largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.Though the project started up later and cost more than originally estimated, it is expected to further cement Australia's lead as the world's biggest LNG exporter, after the country took the crown in November.In a statement, Shell said wells have now been opened at the Prelude facility, located 475 kilometers north-north east of Broome in western Australia.

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 Nuovo Pignone extends back to 2013 as they supplied gas turbine compressors for the three liquefaction trains of our Yamal LNG project.” noted Leonid Mikhelson…