Baltic LNG project entered investment phase of implementation – Aleksey Miller

The project on construction of an integrated facility for liquefaction and processing of natural gas at the port of Ust-Luga (Leningrad Region) has entered the investment phase of implementation, IAA PortNews correspondent cites Alexey Miller, Chairman of the Gazprom Management Committee, as saying at St. Petersburg International Economic Forum (SPIEF 2019). According to him, an integrated facility with gas processing capacity of 45 million tonnes per year and liquefaction capacity of 17 million tonnes per year will be built in Ust-Luga. High ethane percent in the supplied resources will also let build a gas chemical facility.

“So, there will be created an industrial cluster, unique in its potential on a global scale, a vertical system integrated into a unified system for supply of  ethane containing gas: supply, processing followed by LNG production on its base and supply of valuable components to gas chemical facility. In fact, it is Gazprom’s new economic model for monetization of crude hydrocarbons available for the company.”

The project features a social significance. It will generate 5,000 jobs, 70% of equipment, work and services will be provided by Russian companies, supplies will exceed RUB 900 rubles. 

“Investment decisions have been taken for all phases of the project and all projects have entered investment phase of implementation”, emphasized the head of Gazprom.

As Kirill Seleznev, General Director of RusChemAlliance LLC (operator of gas liquefaction facility construction) said in his turn,  the project has entered an active phase of implementation with the first turn of the project to be completed by the end of 2023, the second one – by the end of 2024. 

According to explanations of Deputy Minister of Finance Andrey Ivanov, the financial structure of the project will be developed by the Ministry of Finance involving VEB, VTB, Gazprombank, etc. “I think, for this project we will involve the National Welfare Fund, special tax solutions will be applied as well as everything needed to finance this project. We will strive to do everything to ensure organization and financial resources for this project. The Government of Russia and the Ministry are interested in this project”.

VTB head Andrey Kostin underlined that the project would be implemented within a short period of time.