Vladivostok LNG: Promoting development of Russia East Gas

 

Gazprom aims to speed up new liquefied natural gas (LNG) projects intended to retain or to increase the Company’s share in the global gas market. The Vladivostok LNG project will be a crucial step in accomplishing this objective.

The project is of great importance for developing the eastern part of the Unified Gas Supply System of Russia and boosting Russian gas supplies to the Asia-Pacific markets, including Japan. Despite the fact that Japan is the world’s fourth largest energy consumer, it has scarce domestic energy resources and is the world’s largest LNG importer purchasing almost 100 per cent of consumed natural gas in the form of LNG.

About project
Under the project an LNG plant with an annual capacity of no less than 15 million tons will be constructed near Vladivostok (Primorye Territory). The first train with an annual capacity of 5 million tons will be commissioned in 2018. The LNG plant will be supplied with gas from the Sakhalin (Sakhalin III project), Yakutia and Irkutsk gas production centers.

Cooperation
In 2005 Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed the Framework Agreement of Cooperation. The document sets forth the key areas of the bilateral cooperation in the gas sector. A Joint Coordinating Committee (JCC) was established to implement the Agreement. A Joint Working Group is operational within the JCC.
In January 2011 Gazprom and the Japanese Agency for Natural Resources and Energy signed the Agreement of Cooperation to prepare a joint feasibility study on the options for natural gas use near Vladivostok as well as for natural gas and gas chemicals transportation from the Vladivostok region and their sales among potential customers in Asia-Pacific countries. The Agreement also specifies the details of the LNG plant construction near Vladivostok.

Vladivostok LNG: Promoting development of Russia East Gas

• Gazprom plans to develop a Greenfield, 10 million tonnes per annum LNG plant in Russia’s Far East-near Vladivostok- by the end of the decade

• This project is driven by the booming demand for LNG in the Pacific Basin, while prospects in Europe, Gazprom’s core market, are still poor

• Gazprom  has identified two sources of supply to Vlasicostok LNG (VLNG):
• The Chayandinskoye field in East Siberia

• The South Kirinskoye field in the Sea of Okhotsk
• The VLNG project will require the construction of new infrastructures, especially trunk pipelines, in some of the most remote parts of Russia.

• The power of Siberia pipline across East Siberia
• An upgrade of the Sakhalin-Khabarovsk-Valdivostok (SKV) pipline in the Far East.

Sources                                    Recoverable          Production      
 reserves                                      capacity      
South Kirinskoye                        368 bcm              15.8 bcm      
Chayandinskoye                         453 bcm              22.5 bcm      
Kovyktinskoye                           765 bcm               35.3 bcm   

Three Scenarios of Supply to VLNG

• South Kirinskoye supplying 14 bcm to VLNG through an upgraded SKV pipline

• Chayandinskoye alone supplying 14 bcm to VLNG through a small, new Power of Siberia pipline.

• Chayandinskoye supplying 14 bcm to VLNG AND Kovyktinskoye supplying 38 bcm to China through a grand, new Power of Siberia pipeline.