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Gazprom Adopts FID for Vladivostok LNG Project

Source: www.gulfoilandgas.com 2/21/2013, Location: Asia

The Gazprom Management Committee approved the Investment Rationale for LNG plant near Vladivostok. The Investment Rationale will lay the foundation for generating the project documentation.

In this way, the Vladivostok-LNG project entered the investment stage.

As part of the Vladivostok-LNG project a liquefied natural gas (LNG) plant will be constructed on the Lomonosov Peninsula (Perevoznaya Bay). The plant will have three process trains with an annual capacity of 5 million tons of LNG each. The first train will be put onstream in 2018. The plant will receive gas from the Sakhalin, Yakutia and Irkutsk gas production centers. The target sales markets are the countries of the Asia-Pacific region.

Gazprom's structural units were tasked to prepare within a month period a plan of priority measures to implement the project. The plan, inter alia, provides for establishing a Special-Purpose Company in 2013 and conducting commercial negotiations with LNG purchasers.

The state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program) was adopted in September 2007 pursuant to the Russian Industry and Energy Ministry Order. Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

The new gas production centers in Sakhalin and Kamchatka are ready to operate, the Yakutia gas production center is being rapidly developed and the Irkutsk and Krasnoyarsk centers are next in turn in Eastern Russia.

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