+44 207 394 30 90 (London)

Russia is ready to capture world LNG market

LNG Congress Russia » News » Russia is ready to capture world LNG…

This year, Yamal LNG, a new plant for LNG production, will be commissioned in Russia. This will ensure a 10% share of this country on the world gas market. The prepared infrastructure and its distribution system are the guarantee for excellent future, because Yamal peninsula accounts for several new gas-processing plants. Harsh north climate facilitates the development of LNG technologies in Yamal.

Above all, cold climate favours gas liquefaction. When the temperature is 50 degrees below zero, -170 C liquefaction is made quicker than in hot tropic countries.

Yamal peninsula hides dozens of largest deposits, with estimated reserves as of 26.5tn cubic meters. Yamal LNG project accounts only for their small part – Yuzhno-Tambeysk field, with the volume of 1.3 tn cubic meters. Annual capacity of the first plant train is planned to be 5.5mn tonnes. And by the late 2019, the 3d Yamal LNG train will be put into operation, thus ensuring plant full capacity commissioning.

It is worth to mention, that the required infrastructure will also bolster the successful commissioning of Yamal LNG plant. Sabetta terminal port is constructed for that purpose. Here, A1 airport is constructed to deliver employees, a power station, as well as residential buildings for LNG facilities personnel.

Shipping logistics encompasses the construction of tanker fleet, comprising 15 ice-breaking gas-carriers. Cargo logistics includes 2 seasonal routes: winter and summer. From July to November the ice-breakers will sail to Asia, and the rest of the year the navigation will be limited by the trans-shipment point in the Belgium terminal Zeebrugge.

Yamal LNG plant, $27bn worth, is considered to be one of the most economically viable projects of the sanctions period. It will be commissioned even earlier than it was initially planned. To accelerate the construction, the government broadened the protective measures: LNG export taxes, equipment import taxes and extraction taxes were eliminated for the period of 12 years.

According to Andrew Polischuk, Raiffesenbank analyst, all the expenses incurred by the Government will be compensated in the nearest future, because Yamal LNG project will be profitable in case of gas prices not lower than $6-7 for million BTU. High profitability is explained by the flexible contract system. LNG can be delivered to any part of the world. Moreover, excellent prospects of gas distribution became possible due to wise policy of Yamal LNG owner Novatek company, which has included in the list of shareholders not only Chinese partners CNPC and Silk Road fund, but also French Total.

Source: gosnovosti.com


Japan supported strengthening partnership with Russia on Arctic LNG-2

The Minister of Foreign Affairs of Japan came out for strengthening the partnership with Russia on the energy project Arctic LNG-2. He declared it at the meeting of Russian-Japanese inter-governmental committee. “As for energy. For example, Arctic LNG-2 project, which involved Japanese companies is the field where the Japan’s demand and technology and Russian potential…

Russia presents a grandiose 5-year plan for the Arctic

The sum is 5.5 trillion rubles, Minister of Natural Resources Dmitry Kobylkin said in Monday’s government meeting in Sabetta. Along with Prime Minister Dmitry Medvedev and other key government ministers and business leaders, Kobylkin had made it to the remote site on the coast of the Yamal Peninsula. And that sum only covers the period…

Kremlin informs about potential involvement of Total in Arctic LNG 2 project

NOVATEK and Total plan to sign an agreement on the involvement of French oil and gas company in the new project for gas extraction and liquefaction “Arctic LNG 2″, informs Yury Ushakov, Assistant to the president. During the briefing held in Moscow, president’s assistant informed about the cooperation between Moscow and Paris. He noted that…