Talking at an oil and gas conference this week, Vladimir Vladimirov from the Yamalo-Nenets regional administration said that a LNG plant in the gas-rich peninsula would cost 18-20 billion USD, Oilru.com reports.
It is the companies Novatek and Gazprom which jointly plan the construction of a LNG plant in Yamal. They two companies on 18 June signed a project cooperation agreement, a press release from the companies informs.
The plant will have an annual capacity of 15-16 million tons of LNG and it can be ready for production from year 2018, Vladimirov said.
Both Novatek and Gazprom control huge gas reserves at Yamal. Gazprom is proceeding with the development of its Bovanekovo field located on the west side of the peninsula, while Novatek is planning production at its Yuzhno-Tambeyskoe field on the eastern side of the peninsula.
Parts of the LNG from a Yamal plant could be shipped eastwards along the Northern Sea Route. Several companies have signaled their interest in the project, among them Total, Shell and the Indian ONGC.
Read more news from Yamal in BarentsObserver’s Yamal section
