LNG

The price of building gas-fired power plants in the US has risen to $2,200–$2,500 per kilowatt of capacity, raising doubt about projects economics and freeing up more feedgas for LNG exports. At the Energy Finance Conference in San Diego, panellists warned that building a modern combined-cycle gas power plant now requires hundreds of millions in upfront investment – notably $25 million deposits to secure key equipment.

Russian natural gas company Novatek and its partners in the Arctic LNG project on the Gydan Peninsula have decided to go ahead with the joint venture with the partners signing final investment decision documents.

Vietnam has logged another natural gas discovery in the offshore Song Hong Basin in a prospect explored by Italian energy company Eni and Essar Oil of India as the Vietnamese also advance with two LNG import projects.

TechnipFMC, the Franco-US energy and LNG engineering company, said it was awarded a major engineering, procurement and construction contract by Novatek of Russia and its joint venture partners for the Arctic LNG II project proposed for the Russian Gydan Peninsula of northern Siberia.

TechnipFMC said the consolidated contract value to TechnipFMC for Arctic LNG II is $7.6 billion.

The Arctic development will produce almost 20 million tonnes per annum of LNG from three liquefaction Trains to be installed on three gravity-based structure platforms.

TchnipFMC said it would execute this project under a lump-sum and reimbursable basis. It will cover the EPC of the three LNG Trains and associated topsides, which will be manufactured on a modular basis in Asian and Russian yards.

Technip, before its merger with Houston-based FMC Technologies, worked on the Yamal LNG project, which shipped its first cargo in December 2017.

The Yamal plant comprises three liquefaction Trains built on shore with a total nameplate capacity of 16.5 MTPA, or 5.5 MTPA per Train.

“We are extremely honored to be entrusted with this new contract by Novatek and its partners. We are leveraging our successful track record on the Yamal LNG project and notably the modular fabrication system,” said Nello Uccelletti, President of TechnipFMC’s Onshore-Offshore division.

“This project recognizes the experience and expertise of our teams as well as their capacity to deliver the most ambitious and innovative projects,” added Uccelletti.

“It also confirms the leadership of TechnipFMC both in the LNG market and in the transition journey of the global energy industry,” he stated, without elaborating on his idea.

Other Arctic LNG II project contracts have been signed with turbo-machinery provider Siemens of Germany and the oil and gas subsea specialist and engineering services firm, Saipem of Italy.

Novetak has sold stakes in Arctic LNG II to subsidiaries of two Chinese majors, China National Petroleum Corp. and China National Offshore Oil Corp.

Other investors include a consortium called Japan Arctic LNG comprising Japanese trading house Mitsui & Co and the state-run Japan Oil, Gas and Metals National Corp. and French energy major Total.

The shareholdings of the various participants are: Novatek 60 percent and the four other partners, Total, CNPC, CNOOC and the Japan Arctic LNG each with 10 percent.

Total and CNPC are shareholders in the existing Yamal LNG plant.

Total additionally owns a 19.4 percent stake in the Novatek company so its 10 percent direct stake in Novatek’s second plant gives it 21.6 percent of the Arctic II project.

Novatek, the Russian natural gas company and operator of the Yamal LNG export plant in northern Siberia, has completed the sale of participating interests in its Arctic LNG II project in the Gydan Peninsula to Japanese and Chinese investors.

Novatek, the Russian natural gas company and operator of the Yamal liquefied natural gas plant and developer of the Arctic LNG II project, has signed an accord to set up a joint venture with a Russian bank and China Petroleum and Chemical Corp., or Sinopec, to market LNG in China.

Novatek, the Russian natural gas company whose Yamal LNG plant started operations just over a year ago, is making progress with its second venture planned for the Gydan Peninsula in the Arctic region with the awarding of another equipment contract.

The UK will hold a unique online auction of an almost complete gas-fired power station that was originally built as an energy-from-waste project on Seal Sands on the River Tees  in northeast England.

Commonwealth LNG, a US export project in Louisiana, has initiated its pre-filing environmental review process with the Federal Energy Regulatory Commission for a liquefaction plant in Louisiana with 9 million tonnes per annum of capacity.