Saturday, November 30, 2019

"As LNG prices hit historical low, Russian government decides it will not fund new Arctic projects"

There's a lot of gas around.

From The Barents Observer, November 27:
Natural gas company Novatek might not get the state support it needs for new major infrastructure projects in the Arctic. 

The Russian Finance Ministry has not included any of Novatek’s much-desired projects in its 2020 budget bill.

The natural gas company has been pushing hard for the allocation of about 124 billion rubles (€1.75 billion) for the building of the Utrenneye LNG terminal in Gydan, as well as reloading terminals in Murmansk and Kamchatka.

But the company now appears to be snubbed by government. None of Novatek’s projects are granted funding by the 2020 state budget, newspaper Kommersant reports.

Pressure on Putin
The developments have made Novatek leader Leonid Mikhelson step up his lobbying in the Kremlin. In November, he again contacted President Vladimir Putin and warned that the lack of state funding could ultimately lead to delays in the Arctic LNG 2, the country’s biggest ever LNG project, Kommersant informs.

The Arctic LNG 2 is built in the Arctic peninsula of Gydan and will produce as much as 19,8 million tons of LNG per year. It is considered a crucially important project for President Putin, who aims for a boost in annual shipments on the Northern Sea Route to 80 million tons of goods by year 2025....MORE