24 Oct 2019 19:34

Lukoil and Gazprom Neft announce gas-chemical projects in Arctic, investments to exceed 1.5 trln rubles - Trutnev

MOSCOW. Oct 24 (Interfax) - Gazprom Neft and Lukoil are planning to implement gas-chemical projects in the Arctic, Deputy Prime Minister Yury Trutnev, who oversees Arctic issues, told reporters on Thursday.

On Thursday, a meeting took place between First Deputy Prime Minister and Finance Minister Anton Siluanov, and Deputy Prime Ministers Dmitry Kozak and Yury Trutnev where tax preferences for Arctic projects were discussed.

Gas-chemical projects are in the second group of preferences, along with LNG projects, Trutnev said.

In particular, Gazprom Neft is planning to launch production of ethanol, polyethylene, and polypropylene. Investment in the projects is estimated at 1.1 trillion rubles.

Lukoil's gas-chemical complex will be located on the shores of the Ob Bay. The company would like to launch production of methanol, ethane and liquefied petroleum gas. Investment is estimated at 610 billion rubles, Trutnev said.

"Thus far, this is a discussion with the companies. They say that they will launch these projects, but these are not guarantees. They are not providing us with a bank guarantee. But we are not losing anything. If they don't move ahead with this, then the relevant preferences will not be extended," Trutnev said.