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
Large-scale production of shale gas in the US, which began around the turn of the century, is now feeding US exports in the form of LNG.
Annual demand for natural gas in the EU is pegged at approximately 380 Bm3y–450 Bm3y. A portion of this demand is met by regional production within the EU. However, the European energy system is beset by challenges that are impacting EU gas supply.
ADIP ULTRA: ADIP-X Reimagined
Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts
May 9, 2017 9am UTC