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Russia interested in China’s participation in Ust-Luga project

Andrey Belousov and Senior Vice Premier of the State Council of the People’s Republic of China Han Zheng held the commission’s meeting on Thursday

MOSCOW, November 24. /TASS/. Russia is interested in 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, a representative of Russia’s First Deputy Prime Minister Andrey Belousov said following the meeting of the Sino-Russian intergovernmental commission on investment cooperation.

"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.

Belousov and Senior Vice Premier of the State Council of the People’s Republic of China Han Zheng held the commission’s meeting on Thursday.

Governor of Russia’s Sakhalin Region Valery Limarenko also attended the meeting. He noted that the region plays a special role in the expansion of bilateral ties due to its geographical position. Sakhalin is developing a new low-carbon business: in 2025 Rosatom will construct a plant that produces blue hydrogen, which is expected to become the center of a hydrogen cluster being created. Moreover, a large-scale reconstruction of Korsakov Seaport is planned in the next three years, the governor said, adding that the port is to become a point of departure for cargoes along the Northern Sea Route.

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.