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Russia expects China’s participation in Ust-Luga project — Novak

The project to construct a gas processing and liquefaction complex is being implemented by Gazprom and RusGazDobycha (the operator is RusKhimAlliance owned by Gazprom and RusGazDobycha on an equal basis)

MOSCOW, November 29. /TASS/. Russia is counting on the participation of Chinese partners in the project for construction of gas chemical and gas processing complexes in the Ust-Luga area in the Leningrad Region, Russian Deputy Prime Minister Alexander Novak said at the 4th Russian-Chinese Energy Business Forum.

"We are counting on the participation of Chinese partners in the Ust-Luga project with a capacity of 13 mln tons of LNG per year," he said. "In the future [we will consider] the issue of organizing gas supplies to China from this plant," Novak added.

A representative of Russia’s First Deputy Prime Minister Andrey Belousov said earlier that Russia is interested in the participation of Chinese partners in the Ust-Luga project. "The Russian side expressed interest in the participation of their Chinese partners in major projects for the construction of the Amur gas chemical complex in the region of the city of Svobodny in the Far Eastern District and for the construction of gas chemical and gas processing complexes in the Ust-Luga area in the Leningrad Region," he said following the meeting of the Sino-Russian intergovernmental commission on investment cooperation.

The project to construct a gas processing and liquefaction complex is being implemented by Gazprom and RusGazDobycha (the operator is RusKhimAlliance owned by Gazprom and RusGazDobycha on an equal basis). The project implies the construction of an integrated complex on processing and liquefaction of natural gas in the area of the Ust-Luga seaport (the Leningrad Region), with ethane-containing natural gas supplied from Gazprom’s deposits in the Nadym-Pur-Taz region being the feedstock for the enterprise.

The plant will process 45 bln cubic meters of gas annually and produce about 13 mln metric tons of liquefied natural gas (it was also reported earlier that LNG production may be provided with a third line with a capacity of another 6.5 mln metric tons), up to 3.8 mln of ethane fraction, up to 2.4 mln metric tons of liquefied petroleum gas and 0.2 mln metric tons of pentane-hexane fraction. The natural gas remaining after processing (around 19 bln cubic meters) will be delivered to Gazprom’s gas transport system.