LNG construction on Yamal in 2012
Russia’s largest independent gas producer Novatek plans to start construction of an LNG production plant on the Yamal Peninsula in 2012.
The construction will be carried out in three steps – the first is to start in 2012 and is expected to be completed in 2016, Reuters reports. The start of construction of the second and third trains is set for 2013 and 2014, respectively, and they will be finished in 2017 and 2018.
In June 2010 Novatek and Gazprom signed a project cooperation agreement on construction of a LNG plant on Yamal. The project is expected to cost 18-20 billion USD.
Both Novatek and Gazprom control huge gas reserves at Yamal. Gazprom is proceeding with the development of its Bovanekovo field located on the west side of the peninsula, while Novatek is planning production at its South Tambey field on the eastern side of the peninsula.
Novatek plans to produce 16 million tons of LNG per year. The company has earlier told about plans to use the Northern Sea Route to export gas to Asia.
Russia, the world’s largest energy producer, aims to produce 1 trillion cubic metres of gas by 2030, and during his visit to Novatek’s production region, Putin said the global LNG market would double by 2015.
Read more news from Yamal in BarentsObserver’s Yamal section
