NOVATEK to invest USD 1.5 billion in construction of LNG terminal at Kamchatka

PAO NOVATEK is going to invest USD 1.5 billion in construction of an LNG terminal at Kamchatka.  According to the press center of the Ministry for the Development of the Russian Far East, the location of the terminal is under consideration with Avachinskaya and Bechevinskaya bays among the variants.

The project provides for installation of dedicated large capacity storage tankers for 360,000 cbm of LNG.

The investor’s plan includes linking of the terminal’s gas pipeline to the gas pipeline system of the region.

In 2017, NOVATEK signed a Cooperation Agreement with the Kamchatka Territorial Government on building a sea terminal facility for reloading liquefied natural gas (LNG) at Kamchatka. The parties agreed to create favorable economic and organizational conditions to build a sea terminal facility for reloading LNG from Arctic ice-class tankers to conventional LNG tankers at the East Coast of Kamchatka Peninsula. The terminal’s expected capacity - 20 million tonnes per year. It is to operate for more than 40 years. The construction is to be completed in 2022-2023.

PAO NOVATEK is one of the largest independent natural gas producers in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 16% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».