Page 11 - FSUOGM Week 17 2021

FSUOGM POLICY FSUOGM

State backs development of

former Pechora LNG fields

RUSSIA TWO gas fields in Russia’s far north previously newspaper reported in November. They envis-
expected to underpin the Pechora LNG project age producing 2 bcm per year of gas from the
Alltech had been trying will now receive state support for producing two fields, which will be pumped via a new
to advance Pechora methanol, the Moscow-based Vedomosti news- pipeline to the Barents Sea, near the village of
LNG with Rosneft. paper reported on April 19. Indiga some 300 km away. There it will be used
Russia’s ministries of Energy and Develop- to produce some 1.7mn tonnes per year (tpy) of
ment of the Russian Far East, as well as author- methanol.
ities in the Nenets region, have approved an The cost of the project is estimated at
action plan for developing the Kumzhinskoye RUB200bn ($2.7bn). The global methanol mar-
and Korovinskoye fields, according to a gov- ket is currently fairly strong, with prices cur-
ernment strategy published on April 19. Exactly rently at their highest point since the end of 2018
how the state will support the projects has not – $495 per tonne in Europe and $430 per tonne
been disclosed, however. in Asia. The Pechora methanol project would
Kumzhinskoye contains 140.2bn cubic benefit from its close proximity to markets.
metres of gas and 1.1mn tonnes of condensate, Russian production of methanol has been
while Korovinskoye holds 46.6 bcm of gas and steadily rising over the last decade, from less
1.1mn tonnes of condensate. than 3mn tonnes in 2010 to 4.53mn tonnes in
In November last year, the fields were owned 2019, although it fell to 4.42mn tonnes in 2020,
by the Alltek group of decreased Russian busi- according to state statistics. Of this volume, some
nessman Dmitry Bosov, who died in May 2020. 2.1mn tonnes were exported.
They were acquired by Ruskhim Group, 50% of Alltech had partnered with Rosneft to
which is controlled by ex-parliamentary law- build the LNG terminal. But Rosneft left the
maker Vitaly Yuzhilin. A further 25% is held project in 2019, after concluding that the
by Gennady Mirgorodsky and 25% by Dmi- resource base was too small to support such
try Ozersky, according to the SPARK Interfax a scheme. Alltech and Rosneft had originally
database. hoped to gain access to two more gas fields
The new owners want to build an export-ori- in the vicinity, but were defeated in a subsoil
ented methanol plant, the Kommersant auction by Gazprom. ™

Week 17 28•April•2021 www. NEWSBASE .com P11