Nenets eyes LNG with Gazprom
The oil-rich Nenets Autonoumous Okrug teams up with Gazprom in the Pechora LNG project.
A working group, which is to help prepare the ground for the development of a LNG project in the Timan Pechora region was formally established in early May this year, the Nenets regional administration informs. It will be headed by regional Governor Igor Fyodorov and include representatives of Gazprom, the Alltech Group and the Pechora LNG company.
Governor Fyodorov in January this year invited Gazprom leader Aleksey Miller to look at the plans. The gas company positively responded and are now a key part of the project discussions, the regional administration confirms in a press release.
The project plans include the construction of new gas transportation infrastructure, a gas processing plant, a LNG plant and a terminal at Indiga, a village on the coast of the Pechora Sea.
The LNG project, will be based on the resources of the Kumzha and Korovinskoye gas condensate fields and have an estimated annual production of 2,6 million tons of LNG. The licenses to the fields are controlled by the Pechora LNG company, a unit owned by Alltech. The Kumzha field has estimated reserves of 104 billion cubic meters of gas, while the Korovinskoye field has 41 billion cubic meters.
As previously reported, the Chinese company CNOCC has been named as one of the possible investors in the project, which is expected to have a price tag of about $4 billion. About $2.5 billion of the investments are planned channeled into the development of the LNG plant and adjacent maritime infrastructure, while $1.5 will be spent on the development of the two gas fields
The Nenets AO authorities intend to use the gas extracted from the two fields to help lift the level of gasification in the region. Currently, the region depend on diesel oil transported to the region from outside.