The Gazprom Management Committee adopted a decision to move over to the next stage in implementing the project for LNG plant construction near Vladivostok.

The specialized structural units of Gazprom were tasked to elaborate in the first quarter of 2013 the Investment Rationale for the project.

Background:

In January 2011 Gazprom and the Agency for Natural Resources and Energy under the Japanese Ministry of Economy, Trade and Industry signed the Agreement of Cooperation envisaging preparation of a joint feasibility study on the options for natural gas use near Vladivostok as well as for natural gas and gas chemicals sale and transmission from the vicinity of Vladivostok to potential customers in Asia-Pacific countries.

The feasibility study defined economic conditions for the LNG plant construction in Vladivostok and confirmed its technical feasibility as well as the availability of a market niche for producing no less than 10 million tons of liquefied natural gas per year. According to the study, 2017–2020 is the most favorable period for Gazprom to start supplying its liquefied natural gas from the vicinity of Vladivostok to the Asia-Pacific market.

In addition, the preliminary analysis was carried out to consider possible construction of a compressed natural gas (CNG) production and supply facility. Risks and issues related to this project were identified as well.

Moreover, the feasibility study contains a section dedicated to the preliminary examination of the opportunities for gas chemicals production near Vladivostok. The analysis confirmed the economic viability of selling gas chemicals produced from natural gas of the Russian Far East in the Asia-Pacific region.