Rosneft moves forward with its plans to build a LNG plant on the Pechora Sea coast. Photo: Rosneft.ru

Rosneft aims for Pechora LNG

The state company buys 100 percent of Pechora LNG, the projected gas plant on the Russian Arctic coast.
December 08, 2015

Russia’s most powerful oil company intends to grow big also in natural gas, including LNG.  The company has now got green light from the Russian Anti-Monopoly Service for the acquisition of the controlling stake in the Pechora LNG project, Prime.ru reports.

The acquision is based on an agreement with company Alltech, the owner of the licenses to the nearby fields of Kumzhinskoye and Korovinskoye. The agreement concluded already in 2014, gives Alltech and its owner Dmitry Bosov access to investments, as well as the necessary export permissions.

Alltech is dependent of its alliance with Rosneft because of the latter’s monopoly position on LNG exports. Legislation adopted in 2013 gives only Gazprom, Rosneft, as well as Novatek in the Yamal LNG project, the right to export LNG.

The Pechora LNG will produced an estimated four million tons per year, most of it planned shipped to western markets. Investments are estimated to about $4 billion, the project website informs. The project developers intend to build a new port terminal on the Pechora Sea coast and construct several LNG carriers.

The plant and adjancent infrastructure is to be built near the village of Indiga, about 230 km west of regional capital Naryan-Mar.

Originally, the Pechora LNG is planned to be based on the resources of the Kumzhinskoye and Korovinskoye fields. However, with Rosneft on board the plant could possibly include also offshore resources.

Rosneft pays about $100 million for its stake in the project, a source close to the company previously told newspaper Vedomosti

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