Novatek May Rule Out Own Tech at Obsk LNG: Press

Russian LNG supplier Novatek may decide against using its proprietary liquefaction technology at Obsk LNG, one of its upcoming LNG export projects, the Moscow-based Kommersant newspaper reported on May 15 citing sources.

Novatek is instead considering the use of technology developed by Germany's Linde, the newspaper said, which is also being used at the company's Arctic LNG-2 venture. Difficulties with the commissioning of the fourth 0.9mn metric ton/year liquefaction train at Novatek's Yamal LNG terminal may have prompted the rethink. The train will be first time Arctic Cascade has been deployed, but its launch, originally scheduled for the end of 2019, has been repeatedly delayed.

Another option Novatek is considering is a conversion of Obsk LNG to produce ammonia instead of LNG, Kommersant sources claimed.

Novatek has not commented on the matter. Obsk LNG is expected up and running in 2024-2025, and produce around 5mn mt/yr of LNG at full capacity. But Novatek, which wants to develop the terminal without equity partners, is yet to take a final investment decision. The project's sanctioning was expected in 2020 but the decision was postponed.