Russia's Gazprom delays Baltic, Sakhalin LNG projects
MOSCOW (Reuters) -- Russia's Gazprom has delayed LNG plans on Sakhalin island and in the Baltic Sea, a Eurobond presentation showed on Monday.
The delays could disrupt Russia's plans to carve out a bigger share of the global LNG market, where it aims to triple its market share of less than 5% by 2035.
Gazprom plans to expand the Sakhalin-2 project off Russia's Pacific coast by 2023-2024, the presentation showed, while previously it had announced plans to launch a third LNG production train there in 2021.
The presentation seen by Reuters showed a 2022-23 launch for a new Baltic LNG plant in the Leningrad region, later than the 2021 start aimed for in a June 2016 memorandum of understanding.
Sakhalin-2 is currently Russia's only LNG plant. It operates two production lines with a combined capacity of 10 MMt of LNG per year.
"We expect to commission the third LNG production line at the Sakhalin LNG plant in the period from 2023 through 2024," Gazprom's prospectus for the Eurobond issue said.
The third train is expected to boost production by 5.4 MMtpy.
The plans to expand the plant have been long considered by the shareholders but where hampered by issues related to the gas resources.
Shareholders are considering two options: buying gas from the Sakhalin-1 project led by ExxonMobil, developing new resources or a combination of the two.
Yet, Sakhalin-1, where Russian state-controlled oil major Rosneft is also a shareholder, aims to have its own LNG plant.
Gazprom, the world's top conventional gas producer, has mandated banks to arrange investor meetings in the United States this week, Thomson Reuters news and market analysis service IFR said last Wednesday.
IFR said a US dollar denominated Eurobond of a benchmark size may follow the roadshow, set for March 13 in Los Angeles and March 14 in New York.
Reporting by Vladimir Soldatkin and Oksana Kobzeva; Editing by Jason Neely
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
View on Demand