China to invest in Pechora LNG
Pechora LNG project owner Alltech is planning to pick partners to the project this year.
China National Offshore Oil Company Limited (CNOOC) may invest in Pechora LNG, a new LNG production project in the Nenets Autonomous region, said Vladimir Mikulik, CEO of SN-Neftegaz that manages oil and gas assets of Pechora LNG project owner Alltek, Marchmont News reports.
How much the Chinese partner might consider putting up has yet to be specified; it is known that the project with a USD 4 billion price tag will include construction of an LNG plant and the development of a natural gas field.
According to Mr. Mikulik, the project owner is also currently in talks with Vietnam’s PetroVietnam, Korea’s KOGAS and a number of Russian companies, including NOVATEK.
Leader of Alltech Dmitry Bosov earlier said that a final investment decision is planned made in late 2011. Tenders will be held in 2012, and the LNG plant could be up running in year 2015, as BarentsObserver reported.
The plant will serve the Korovinskoe and Kumzhinskoe fields which together have estimated reserves of almost 150 billion cubic meters of gas. Production capacity will be an annual of 2.6 billion tons of LNG over a 25 year period, all of which is to be exported to Southeast Asia. The natural gas is to be pipelined 350 km to Indiga on the Pechora Sea coast where the LNG plant and a terminal are to be built.
