Construction Of Russia's Utrenny LNG Terminal To Cost Over $2.3Bln - Deputy Prime Minister
The total investment in the Utrenny liquefied natural gas (LNG) terminal in the port of Sabetta in Northern Siberia will exceed 150 billion rubles ($2.32 billion), Russian Deputy Prime Minister Maxim Akimov told Sputnik, adding that 112.1 billion rubles would be allocated from Federal budget.
"This project will cost more than 150 billion rubles, of which 112.1 billion [rubles] are budget funds, while the investor plans to invest another 40 billion [rubles] in infrastructure. Of course, this project is expensive, but it is necessary because it will serve the needs of Arctic LNG 2 and from the point of budgetary efficiency, this is a payback investment. There will be a pool of private investors, and we will work with them," Akimov said on the sidelines of the International Arctic Forum.
In March, Russian President Vladimir Putin instructed the government to provide budget funds in 2020-2022 for the construction of the Utrenny LNG terminal.
The construction of the terminal is necessary for Arctic LNG 2, Novatek's second large-scale LNG project, which will have three production lines with a total annual capacity of 19.8 million tonnes. The launch of the project's first line is expected in 2022-2023, while the launch of the other two lines is projected for 2024 and 2025, respectively.
The 5th International Arctic Forum, which started on Tuesday and will conclude later on Wednesday, is a platform for discussing socioeconomic development of the Arctic region. The key theme of the current forum is "The Arctic: An Ocean of Opportunity." The participants discuss coastal regions, the open ocean zone and sustainable development of the Arctic.