Gazprom completes Investment Rationale for Vladivostok-LNG project

abarrelfull wrote on 12 Feb 2013 18:59
Tags: c-asia gazprom lng russia

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The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Vladimir Miklushevsky, Governor of the Primorye Territory.

The parties reviewed the Eastern Gas Program progress in the region, discussing, in particular, the project for the LNG plant construction near Vladivostok (Vladivostok-LNG project). It was stressed that Gazprom had completed an Investment Rationale for this project. The document is currently under expert review in Gazprom and will be subsequently addressed by the Company's Management Committee.

Special attention was paid to the Primorye Territory gasification process. Between 2009 and 2012 Gazprom allocated more than RUB 9 billion for this purpose. The General Gas Supply and Gasification Scheme for the region was developed, four inter-settlement gas pipelines were constructed, the work began on designing seven gas branches, seven gas distribution stations and eight inter-settlement gas pipelines. In 2013 the design and estimate documents will be further developed.

The parties noted that Gazprom was a major investor into the Primorye Territory economy. Between 2009 and 2012 the Company invested a total of RUB 130 billion in the region.

Background

The open-ended Cooperation Agreement between Gazprom and the Primorye Territory Administration was signed in June 2012. The Gasification Accord was concluded in November 2006. A joint Development Program for Gas Supply to and Gasification of the Primorye Territory was approved for 2012 through 2015. The regional Administration also endorsed a program developed by Gazprom for the conversion of motor vehicles and agricultural machinery to natural gas.

A section of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) – the first interregional GTS in the Far East – passes through the Primorye Territory. The first segment of the GTS was put into operation in 2011. Its length is 1,350 kilometers including a 573 kilometer long section running through the Primorye Territory.

The GTS construction made it possible to start large-scale gasification of the Russian Far East. CHPP-1 and CHPP-2 in Vladivostok, mini-boiler houses on the Russky Island became the first gas consumers in the Primorye Territory.

Under the Vladivostok-LNG project a liquefied natural gas plant will be constructed on the Lomonosov Peninsula (Perevoznaya Bay). The plant will have several process trains and an annual capacity of no less than 10 million tons of LNG. The first train is scheduled for commissioning in 2018.

• Gazprom completes Investment Rationale for Vladivostok-LNG project

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