Expert says Vladivostok-LNG is not economically viable project

The project on construction of LNG plant in Vladivostok is not economically viable, IAA PortNews journalist cites RusEnergy partner Mikhail Krutikhin as saying at the 4th Yamal & Kara Sea Oil & Gas Conference in Moscow. 

According to him, incoming gas will cost $300-340 per 1,000 cbm which makes the product uncompetitive as compared with that supplied by other countries like Australia, Canada, Qatar and the USA. 

Mikhail Krutikhin says such a plant can only operate at a loss thus subsidizing the consumers of other countries. 

More over, analysts question profitability of Yamal LNG project if it loses state support and preferences. 

The Memorandum of Understanding in implementation of LNG plant in Primorsk Territory was signed by the Territory Governor Vladimir Miklushevsky and Gazprom Management Committee Chairman Alexey Miller in November 2013. Investments into the project to make $13.5 bln. The construction is to commence in December 2014.