2016 March 30 10:30

Federal investments into port Sabetta will not pay back through harbor fees alone – audit findings

Federal investments into port Sabetta will not pay back through harbor fees alone, IAA PortNews correspondent cites Yury Stepanov, representative of Sweco Soyuz Engineering which held procedures and prices audit of the project, as saying at the meeting of Rosmorrechflot’s Expert Council.  According to him, it is necessary to calculate the efficiency of state investments into federally owned facilities of port Sabetta in combination with the development of the South-Tambeyskoye field and construction of LNG plant. However Yury Stepanov says the revenues from port activities will fully cover its operational costs.

In general, the audit did not reveal any opportunities for considerable optimization of the project. Besides, auditors confirm the compliance of the project to Russia’s regulatory documentation while the construction costs are similar to those of other LNG terminals built from scratch. Construction cost is $122 per tonne of LNG at dollar rate of RUB 38 in 2014, or even less amid devaluation. Similar projects in Australia are estimated at $124-$142 per a tonne of LNG.

The budget of port Sabetta is RUB 102.96 bln with VAT including RUB 69.4 bln from the federal budget. Sweco Soyuz Engineering says state contracts signed by today are valued at RUB 66.5 bln, RUB 36.1 bln has been allocated including RUB 28.2 bln already spent.

Port Sabetta is being built under Yamal LNG project for shipments of export LNG. The Yamal LNG project envisages the launch of three LNG trains with a total expected capacity of 16.5 million metric tons of LNG per year. They are to be launched in 2017, 2018 and 2019 accordingly. The second plant with total capacity of 16.5 mln t is to be built later.