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The media reported on the threat to LNG projects in Russia

Photo: NOVATEK

Russia will have difficulties with the development of LNG projects

Baker Hughes recalls its key process equipment service engineers from Gazprom and NOVATEK projects.

The American oilfield service corporation Baker Hughes is pulling out of all LNG projects in Russia. On Thursday, June 16, reports businessman with reference to sources among the Russian counterparties of the company.

Thus, Baker Hughes recalls its engineers for the maintenance of key technological equipment (gas turbines and compressors) from the Yamal LNG projects of NOVATEK and Sakhalin-2 of Gazprom, project engineers from the project under construction of NOVATEK’s Arctic LNG-2.

At the same time, Baker Hughes is halting shipments of equipment for Arctic LNG-2, including gas turbines. The timing of completion of the construction of the first line of the project directly depends on these deliveries.

According to sources, in fact, this calls into question the further operation and commissioning of foreign equipment, and also makes it impossible to supply spare parts for its repairs.

It is emphasized that the American company is terminating the agreements, despite the fact that there are no direct sanctions restrictions on the service and supply of gas turbines in the Russian Federation (it is forbidden to conclude new contracts), and Gazprom and NOVATEK are not under direct US or EU sanctions, the newspaper notes.

Note that Baker Hughes is one of the so-called “big four” oilfield services, along with Halliburton, Schlumberger and Weatherford.

Oilfield services include: drilling wells (operational and exploration), their maintenance and overhaul, seismic surveys and geophysical work, infrastructure construction, the use of enhanced oil recovery methods and production stimulation, transportation services, maintenance and repair of oil equipment.

Recall from the beginning of 2022 Gazprom cut exports by almost a third. Less than 65 billion cubic meters of gas were sold to non-CIS countries.

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