Ust-Luga LNG plant should start up in 2027, NWF to provide 0.9 trln rubles in financing
MOSCOW. Feb 6 (Interfax) - The government has put forward the possibility of co-financing the project for the ethane-containing gas-processing complex in the village of Ust-Luga from the National Wealth Fund
Government order No. 196, dated January 31, 2024 is posted on the Official Internet portal of legal information.
The project to build the gas processing and liquefaction complex is being implemented by Gazprom and Rusgazdobycha (operated by Ruschemalliance, owned on a parity basis by Gazprom and Rusgazdobycha).
The project provides for the creation of an integrated complex for processing and liquefying natural gas near the Ust-Luga seaport. The raw material for the enterprise will be ethane-containing natural gas from Gazprom's fields in the Nadym-Pur-Taz region, delivered through dedicated gas pipelines.
The complex will process 45 bcm of gas annually and about 13 million tonnes of LNG will be produced (it was reported that LNG production could receive a third line, adding an additional 6.5 million tonnes in capacity), as well as up to 3.8 million tonnes of ethane fraction, 2.4 million tonnes of liquefied petroleum gases (LPG) and 0.2 million tonnes of pentane-hexane fraction. The natural gas remaining after processing (about 19 bcm) would be sent to the Gazprom gas transportation system.
The maximum amount of funds the National Wealth Fund could set aside for the project is over 900 billion rubles.
Operations at the gas processing and gas chemical complex should begin in 2026 and 2027 (Phases I and II, respectively), while the LNG plant would start up in 2027 and 2028.
The total cost of the investment project, taking value added tax and operating flow in the investment phase into account, is 4.915 trillion rubles in nominal (forecast) prices.
Capital investments will be at least 2.970 trillion rubles in corresponding years' prices, excluding value added tax, and includes 1.458 trillion rubles for the gas processing complex project and 1.512 trillion rubles for the gas chemical complex project.
Meanwhile, the need for investment project financing minus the refundable value added tax and operating flow at the investment stage is 4.1164 trillion rubles, including 2.0096 trillion rubles for the gas processing complex project and 2.1068 trillion rubles for the gas chemical complex project.