Interview
Gazprom
Barnaud said that the Adgas deal was a watershed for Gazprom; “It showed that we could be
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competitive” and was one of our “first really big deals,” although he confirmed that the main driver
behind the deal was to provide comfort for Sakhalin-II’s long-term Japanese and Korean buyers.
“Each contract is different, but the basic principle is that for 35 years on European markets, Gazprom has
always honoured its supply contracts, and there was no way that we would have looked at the delays in
Sakhalin without bringing relief to our buyers.”
Sakhalin-II itself is on target, says Barnaud, with the final phase commissioning expected towards year
end and first LNG export in January-February 2009.
There has, however, been renewed speculation over Gazprom’s involvement in the 5.17 Bcm/year
Rabaska terminal, located near Quebec City, Canada, which is planned to take some of the volumes from
LNG Business Review provides you
Shtokman. Canadian prime minister Stephen Harper warned in August that such a deal could be thrown
into jeopardy by Russia’s military actions in Georgia, and although the Rabaska management have
with a global perspective on the issues
assured Gazprom that Harper’s comments would not hinder the project, it has highlighted the bridges
Gazprom will have to rebuild with the West following the events in the Caucasus.
facing LNG management and is a
In May, Gazprom signed a letter of intent under which it would take an equity stake in Rabaska and
hold all of the capacity in the terminal which is scheduled to start operations in 2014. Rabaska is owned
powerful tool for all LNG professionals
jointly by Canadian pipeline operator Enbridge, Montreal gas distributor Gaz Metro and GdF Suez, and
Barnaud said that GM&T are currently working on a marketing scheme and project evaluation for
Rabaska. The project partners have indicated that a definitive agreement will be signed by the end of
the year.
Barnaud confirmed that the business model for Shtokman still has to be formalised, but with FID
expected to be taken in Q4 2009, he said that GM&T is working actively on it but still has time to adapt
the business model.
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Nevertheless, Barnaud said that the base case scenario in which Gazprom takes 100% of Shtokman
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OCTOBER 2008 – VOLUME 1, ISSUE 1
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priority. The development, which is currently in the FEED phase, faces a tight schedule if it is to achieve
OLUME 1
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WWW.LNGBUSINES
first gas by 2013. Construction for Phase I of the LNG project is expected to begin in 2010 with first LNG
Subscribers to LNG Business Review
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of around 7.5 mtpa scheduled for 2014. Industry analysts say a 2014 target date is unrealistic for such
benefit from:
a complex project. Construction on less challenging North Sea projects experienced at least a one year
slippage.
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11 issues a year delivered to your inbox keeping
“We still see the North American market as a good long term market for our LNG business,” Barnaud
you informed of the latest global LNG issues
said. “It is extremely difficult to assess the short-to-mid term effect of the development of shale and
other unconventional gas resources on the market.”
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Full access to LNG Business Review’s fully
A rumor
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“It has had an impact already, but over the long term nobody has been able to predict the effects and
searchable archive dating back to 1993. This
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pushing [Shtokman] volumes to the US and Canada remains the base case for several reasons, including
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Cover Article:
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the fact that it will provide us with a kind of global diversification and strategic development for LNG.”
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Unconventional Sources: 27
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