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3:16 pm - Monday January 21, 8841

Russia launches $27 billion LNG project

Moscow,

A $27 billion liquefied natural gas plant in the Arctic Circle of Russia has been launched as the country moves to become the world’s biggest exporter of the chilled fuel, surpassing Qatar.

Russian independent gas producer Novatek will start deliveries from the Yamal LNG plant under major contracts on April 1, 2018, Leonid Mikhelson, head of the company, said.

The plant was launched on Friday at a ceremony in the port of Sabetta on the Yamal peninsula. The centrepiece of the event was the loading of the first gas shipment onto an ice-breaking tanker from the Yamal LNG plant, reports TASS.

“We said earlier that 96% (of LNG volume gas produced at the plant) has been contracted. The supplies will begin next April. Everything which is produced before that are early deliveries that will bring additional revenues,” Mikhelsone said.

According to Michelson, the first batch of LNG will be sent to the countries in the Asia-Pacific region, most likely to China Japan may buy about 40% of all liquefied natural gas produced at the Yamal LNG plant.

“We do not have direct long-term contracts with Japanese buyers, but I would not be surprised if 40% go to the Japanese market. Japanese buyers are the most qualified, as the largest market. “If (Japan) buys gas from our portfolio clients, I will not be surprised,” he said.

Mikhelson also welcomed the participation of France’s Total, which owns 18.9% of Novatek and 20% in its Yamal LNG project.Novatek has one more LNG project, Arctic LNG-2, which will be implemented on the Gydan Peninsula.

Its capacity will be 18 million tonnes of LNG per year.Mikhelson also welcomed the participation of Total in the second plant in Arctic LNG-2 project.

Posted in: World

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