Page 16 - GLNG Week 10 2023

GLNG FSU GLNG

Gazprom unveils $3bn East Siberian

LNG project

RUSSIA GAZPROM plans to develop a $3bn mid-sized on domestic sales. Russian LNG is currently
LNG export terminal in Eastern Siberia, as Rus- almost entirely exported, and even small-scale
The facility would sia scrambles to expand its liquefaction capacity plants like Gazprom’s 1.5mn tpy Portovaya LNG
provide gas to domestic following the loss of most of its European gas facility in north-west Russia only distribute part
users. market share. of their output to the domestic market.
The state-owned gas exporter’s subsidiary It is in Gazprom’s interest to develop the
Gazprom Nedra last week signed a co-opera- domestic market for LNG, given its drastic loss
tion agreement with the administration of the of European gas market share over the past year.
Krasnoyarsk region on developing several gas Gazprom is yet to clinch a contract with
blocks to underpin the LNG project. The plant China on developing the 50bn cubic metre per
will have a capacity of 2mn tonnes per year (tpy), year Power of Siberia 2. But if the pipeline is laid,
according to Moscow-based Vedomosti, which it will pass just 50 km away from Krasnoyarsk,
was citing a Gazprom presentation. providing access to pipeline gas to two thirds of
Prior to its invasion of Ukraine, Moscow had the region’s population, Krasnoyarsk Governor
grand ambitions to build out its LNG industry Alexander Uss told the forum.
in order to target more markets globally and The LNG plant will be fed with gas from the
reduce its reliance on sales to Europe and China. Abakansky, Ibinsky and Ilbokichsky blocks that
But Western sanctions have hindered this effort. contain a combined 130 bcm of gas, accord-
Western companies are barred from providing ing to Gazprom. Production from the fields is
technology to Russian LNG projects, and the anticipated by Gazprom to reach 3.9 bcm by
sector is heavily dependent on foreign technol- 2025, according to the presentation seen by
ogy. Making matters worse, a number of interna- Vedomosti.
tional contractors, suppliers and financiers have Gazprom is targeting LNG sales to off-grid
also left projects, whether because of sanctions consumers in Krasnoyarsk, including 15 indus-
or because of reputational damage. trial users, a heat and power plant and 22 heat-
Unlike larger-scale projects, however, Gaz- ing plants. It will be delivered to those consumers
prom’s planned plant will be the largest to focus either by truck, rail or via river tankers. ™

P16 www. NEWSBASE .com Week 10 09•March•2023