Gazprom & Primorye Territory Sign MOU for Vladivostok LNG Project

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

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

The parties discussed the large-scale activities carried out by Gazprom in the region as well as the prospects for cooperation. Special attention was paid to the LNG plant construction project (Vladivostok-LNG). It was noted that the implementation of this project would be highly conducive to the Primorye Territory development.

In the course of the meeting Alexey Miller and Vladimir Miklushevsky signed the Memorandum of Understanding and Cooperation while implementing the Vladivostok-LNG project. The document stipulates that the parties will take comprehensive measures for executing the project within the preset time frame. In particular, the Primorye Territory Administration will provide assistance to Gazprom in obtaining necessary approvals and registering ownership rights for real estate facilities to be constructed and land parcels to be purchased.

The parties will prepare and sign a joint action plan for implementing the LNG plant project.

The meeting also addressed the gasification process ongoing in the Primorye Territory under a program effective for 2012 through 2015. At present, design and estimate documents are being prepared for five gas pipeline branches, five gas distribution stations and six inter-settlement gas pipelines in the Dalnerechensky, Ussuriysky and Spassky Districts, as well as in the municipalities of Bolshoy Kamen and Fokino.

Gazprom and the Primorye Territory Administration interact under the Cooperation Agreement, the Gasification Accord and the Memorandum of Intent with regard to the implementation of projects aimed at building gas chemical facilities in the Russian Far East.

Gazprom implements the investment project for constructing the first inter-regional gas transmission system (GTS) in the Far East, particularly in the Primorye Territory: the Sakhalin Khabarovsk Vladivostok GTS. The first line of this GTS is already in operation, stretching for 1,350 kilometers, including 584.3 kilometers across the Primorye Territory.

The GTS construction made it possible to start large-scale gasification of the Russian Far East. CHPP-2 in Vladivostok became the first gas consumer in the Primorye Territory.

Between 2009 and 2012 Gazprom's overall capital investment in the Primorye Territory amounted to RUB 135.8 billion.

In February 2013 Gazprom took the investment decision on the LNG plant construction in the Primorye Territory. The start of supplies from the first train of the plant is expected in 2018, from the second train in 2020. Each train will have an annual capacity of 5 million tons. In future the plant capacities may be expanded.

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