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.