Vitaly Markelov: Vladivostok LNG is a very attractive project both for consumers and investors
Today Gazprom delivered 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.
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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 relevant 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 developed Yakutia and Irkutsk gas production centers exceed 4.6 trillion cubic meters. The Company continues large-scale geological exploration activities in these regions, which are projected – to result in a further buildup of gas reserves.
An important condition for the successful implementation of the project is the availability of the pertinent infrastructure. Gas will be delivered to the plant via the Sakhalin – Khabarovsk – Vladivostok gas transmission system already constructed by Gazprom and eventually via the planned Power of Siberia gas pipeline.
The competitive advantages of the Vladivostok LNG project also include a high quality of gas, 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. Consumers will get a new reliable source of high-quality energy in the immediate proximity to their receiving terminals. Investors have the unique opportunity of investing into the project with 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 the environmental and safety standards at all stages – during the plant construction and operation.
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. In September a special-purpose company Gazprom LNG Vladivostok was registered in the Khasan District of the Primorye Territory.