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Kamchatka invites NOVATEK to enter TOR or SPV with an LNG terminal project - EastRussia | Far East

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Kamchatka suggested NOVATEK to enter the TOP or SPV with the LNG terminal project

Special project TORA and Free Port
The Government of the Kamchatka Krai is ready to provide all possible support to the project of PJSC NOVATEK for the construction of an LNG terminal, the company was invited to consider options for implementing the project under the Kamchatka and Vladivostok Free Port regimes, the press service of the regional government said on Thursday.

“First of all, it would probably be wrong not to use our exclusive opportunities as territories in order to place such objects here. Secondly, without the development of production, traffic, infrastructure, it is impossible for the region’s social and economic development. This project is significant not only for Kamchatka, but also for the entire Russian Federation, ”the deputy chairman of the regional government, Yury Zubar, said in a message.

The implementation of this project will allow the company to optimize the costs of transporting gas produced in the Russian part of the Arctic - on the Yamal and Gydan Peninsulas to the APR countries. LNG is planned to be delivered to the Kamchatka via the Northern Sea Route by Arctic ships, and then reloaded to the Convention class ships. “Geography itself has determined our appearance here. In this sense, Kamchatka is the first region with deep-sea non-freezing bays with direct access to the Pacific Ocean. That is why we are here and why we are assessing the possibility of building transshipment with a volume of 20 mln tonnes in order to enable us to market and sell our LNG produced by optimizing transportation costs, reducing the number of expensive ice-class tankers and using conventional-class vessels that are significantly cheaper than ships for work on the Northern Sea Route ", - the message says Deputy Chairman of the Board of NOVATEK Lev Fedosyev. According to him, the company is implementing several large-scale LNG production projects in the Yamalo-Nenets Autonomous District. After they reach their design capacity, the annual production of LNG and liquid hydrocarbons may amount to more than 35 million tons per year. The company plans to launch the first 5,5 million tonnes plant this year.

“This transshipment will be at least 40 years old, and maybe all 100. Therefore, the most important question is a permanent business. Here is the amount of work for decades. And I hope that the volume of liquefied gas will provide the basis for year-round transportation along the entire route of the Northern Sea Route, ”the press-service of Atomflot CEO Vyacheslav Ruksha quotes.

At present, the company together with the representatives of Atomflot and foreign engineering organizations are studying the possibility of building a terminal in Kamchatka. 1 August, the delegation conducted a survey and technical assessment of sites for the proposed construction of the terminal in the bays of Vilyuchinskaya, Russkaya, Bechevinskaya and Morzhova. They also plan to inspect the Avachinskaya Bay.