Gazprom Starts Developing Design Documentation on Vladivostok-LNG Project

Source: www.gulfoilandgas.com 11/20/2013, Location: Asia

The Gazprom Management Committee Chairman Alexey Miller held at the Company's headquarters a meeting dedicated to the Vladivostok-LNG project. It was noted that the project was progressing rapidly and on schedule – the first train of an LNG plant will be commissioned in 2018.

As of today, a special-purpose company – Gazprom LNG Vladivostok – is set up to implement the project. The design documentation is being developed with a view to be completed in the third quarter of 2014.

Gazprom expects to receive an environmental approval next autumn, and a positive feedback from the Russian State Expert Evaluation Department – by the year end. Project investigation works are underway on the Lomonosov Peninsula (Portovaya Bay) – the proposed location of the LNG plant and surrounding infrastructure.

In particular, engineering surveys are ongoing with a purpose to design LNG plant facilities and an export terminal. It is expected to carry out a whole set of the detailed investigations, including geotechnical, hydrometeorological, environmental, seismological and seismotectonic research. It is also planned to conduct an area survey to detect any explosive objects or archeological sites. The findings will help to work out the proper location for new facilities.

The meeting participants were particularly focused on an issue of defining future partners for joint implementation of the Vladivostok-LNG project. Several big international companies have already expressed the interest to the project, and their experts viewed some parts of the Investment Rationale between August and November this year. In addition, some potential LNG buyers, including Japanese companies, showed their interest as well.

The meeting resulted in assigning tasks aimed at the timely execution of the Vladivostok-LNG project.

Gazprom aims to speed up new LNG projects intended to increase the Company's share in the global gas market. Vladivostok-LNG is one of such projects.

In February 2013 the project entered the investment stage. March saw the approval of an Action Plan regarding the LNG plant near Vladivostok as well as an Action Plan regarding the resource base of the project.

The start of supplies from the first train of the plant is expected in 2018, from the second train – in 2020, with the capacity of each train amounting to 5 million tons a year. In future the LNG plant may be further expanded.

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