Gazprom takes final investment decision on Vladivostok LNG

2/21/2013

Gazprom takes final investment decision on Vladivostok LNG

BY JAMES MARSON

MOSCOW -- Gazprom has finalized investment terms for a gas liquefaction facility on Russia's Pacific Coast as it seeks to boost shipments to Asia amid falling demand and regulatory strife in its most lucrative European market.

Gazprom said it would build the plant near the city of Vladivostok, consisting of three LNG trains with a total capacity of 15 MMmt. The first train will be completed in 2018. Gazprom had earlier said the plant would have a capacity of at least 10 MMt.

The company gave no forecast for the cost of the project. Last October, Gazprom said the plant would cost $7.3 bn. The LNG plant is part of Gazprom's so called Eastern Gas Program, that will take gas from new fields in Russia's far east by pipeline to Vladivostok. The cost of developing the new fields and constructing the pipeline is forecast at nearly $40 bn.

Dow Jones Newswires

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