Gazprom and Itochu completed feasibility study
November 26th, 2012, Alexey Miller, Chairman of Gazprom hosted a meeting in Moscow with a Japanese delegation led by Japan Ambassador Chikahito Harada about the joint project of liquefied natural gas (LNG) plant in Vladivostok in the outmost Far East of the Russian Federation.
In January 2011, Gazprom and Japan Far East Gas Co., a consortium led by Itochu Corp (Itochu) and involving CIECO, Inpex, Japex, Marubeni signed an agreement to proceed with the feasibility study of the Vladivostok LNG project.
Itochu holds 37.5% of the Japan Far East Gas Co., a consortium.
In June 2012, the Japanese Ministry of Economy Trade and Industry and the Russian Ministry of Energy inked through a Memorandum of Understanding (MOU) their agreement to support this project.
In 2011, the natural gas represents only 14% of the Japan energy mix but this percentage is expected to grow drastically in following Fukushima accident.
Sakhalin II represents 8% of the Japan LNG market.
Gazprom approved pipeline to supply Vladivostok LNG
The Vladivostok LNG project should be the east masterpiece of the Gazprom Unified Gas Supply System (UGSS), the world largest network of pipeline covering the Russian Federation, as the door opener on the Asian markets.
The Vladivostok LNG project should have a capacity between 10 million t/y of LNG based on the commercial agreement signed with Japan, but it could reach 20 million t/y with the addition of new contracts such as Gazprom is currently discussing with Vietnam.
– $13.7 billion capital expenditure for the upstream part.
– $24.5 billion capital expenditure for the midstream section with the construction of 3,200 kilometeters gas export pipeline up to Vladivostok through Khabarovsk.
Gazprom is planning to complete the construction of the Chayandinskoye – Khabarovsk – Vladivostok pipeline in 2017.