First Russian-Iranian small LNG plant to be built in Chelyabinsk region by 2027

ASTRAKHAN. Nov 14 (Interfax) - The first joint Russian-Iranian LNG plant in Russia is set to be built in the Chelyabinsk region by 2027, Russian Gas Society Vice President and Executive Director Nikolai Isakov told journalists on the sidelines of the 2nd North-South Corridor: New Horizons international forum in Astrakhan on Thursday.

The joint venture will be built by Russia's Cryogas Chelyabinsk LLC and Iran's North-South Corridor Development Group.

"This isn't the first LNG plant being built in Russia. It's the first joint project with Iran for small-scale LNG production, with a capacity of approximately 5 tonnes per hour," Isakov said.

The Iranian side is acting as the investor, with investment estimated at around 1.2 billion rubles, he said.

"All technical conditions for connecting the future plant to the main gas pipeline in the Chelyabinsk region are now nearing completion. These technical conditions will probably be issued at the end of this year or early next year. We hope to connect to the gas pipeline by May 2025. Then we can begin coordinating timelines for equipment delivery and so on," Isakov said.

According to preliminary data, construction is expected to be completed by the end of 2026, he said.

During the forum, Cryogas Chelyabinsk LLC General Director Pavel Kotov, North-South Corridor Development Group CEO Bahram Bahramsiri, North-South Caspian International Integration Club General Director Dmitry Dubovik and Nikolai Isakov signed a memorandum on cooperation in business development in Russia, in particular for the preparation, construction, operation, and maintenance of compression projects, especially CNG/LNG projects and small-scale plants.

Cryogas Chelyabinsk LLC was established in 2021. Its primary activity is wholesale trade of solid, liquid, and gaseous fuels and related products. According to the Unified State Register of Legal Entities, 43% of the company's charter capital is held by Director Pavel Kotov and Alexei Kalinin, while Sergei Lipatov and Alexander Krainev each hold a 7% stake.

The company's revenue grew 13.9% to 40.857 million rubles in 2023. Net losses were at 400,000 rubles compared to a profit of 10,000 rubles the previous year.