Gazprom: Vladivostok LNG Project Very Attractive for Consumers and Investors

Gazprom delivered on Tuesday a presentation of the Vladivostok-LNG project in Vladivostok on the Russky Island. The presentation was intended for prospective purchasers of liquefied natural gas (LNG) and partners from Japan.

Taking part in the event were Vitaly Markelov Deputy Chairman of the Gazprom Management Committee, Sergey Sidorov, First Vice Governor of the Primorye Territory, heads of Gazprom’s structural units and subsidiaries.

It was highlighted during the presentation that the Asia-Pacific LNG market was the most receptive and fast growing in the world, with Japan being one of the major consumers there.

The Vladivostok-LNG project run by Gazprom is quite well-timed. 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.

One of the key advantages of the Vladivostok-LNG project fundamentally distinguishing it from other projects is its significant and secure resource base. At present, Gazprom’s A+B+C1+C2 gas reserves in the operating Sakhalin and the Yakutia and Irkutsk gas production centers under development exceed 4.6 trillion cubic meters. The company continues large-scale geological exploration in these regions, which are forecasted to result in further gas reserves buildup.

An important condition for successful project implementation is the availability of the necessary infrastructure. Gas will be delivered to the plant via the Sakhalin – Khabarovsk – Vladivostok gas transmission system already constructed by Gazprom and eventually via the projected Power of Siberia gas pipeline.

The competitive advantages of the Vladivostok-LNG project also include a high quality of gas, application of a reliable and proven gas liquefaction technology, favorable natural and climatic conditions, maximum proximity to Asia-Pacific markets and the Company’s long-term experience in supplying gas to the global market.

“Today it may be stated with certainty that Vladivostok-LNG is very attractive both for prospective consumers and investors. The consumers will get a new regular supply of high-quality energy sources in the immediate proximity to their receiving terminals. As for the investors, they have an unrivalled opportunity of investing into the project with an access to the very promising emerging Asia-Pacific markets,” said Vitaly Markelov.

He confirmed the possibility of attracting a strategic partner which may acquire up to 49 per cent in the project.

It was particularly stressed at the meeting that Gazprom guaranteed full compliance with environmental and security standards at all stages – during the plant construction and operation.

[mappress]
LNG World News Staff, October 22, 2013; Image: Gazprom