international magazine
27-02-2019 12:51


LEONID MICHELSON: YAMAL LNG CREATED 80,000 JOBS AND GIVES ANNUALLY 0.15% of GDP. SPRING LAUNCH OF LNG BUNKERING IN VYSOTSK.



LEONID MICHELSON: YAMAL LNG CREATED 80,000 JOBS AND CREATES ANNUALLY 0.15% of GDP. SPRING LAUNCH OF LNG BUNKERING IN VYSOTSK.

Russian President Vladimir Putin met with the chairman of the board of Novatek, Leonid MICHELSON. The Kremlin’s press service reported this 02/26/2019. During the conversation, MICHELSON reported to Putin about the main projects that the company has in different regions of the country.


Michelson: The main strategy in today's Novatek is the development of LNG. In December 2017, you opened the first line of Yamal LNG, and in December 2018 we launched it at full capacity - 16.5mn t, and today a tanker is being shipped every 33 hours – 70,000t of LNG.
Orders were placed - about 650bn rubles (about $10bn - OM) at Russian enterprises, 55 regions were involved in the {LNG terminal – OM} construction. In many regions – as far as in the Krasnoyarsk Territory there are some plants, each specializes in its own equipment.

What is very important, we have started the construction of the fourth line, and this line, using the Novatek technology, is completely based on Russian equipment. It is an industrial pilot, of about a 1mn t of LNG. We will test next year and we will customs them. A month later we are launching a medium-tonnage LNG plant in Vysotsk, 600,000t. There we rely mainly on ships bunkering segment. This is in the Leningrad region. The first line is 600,000t. We will probably take another two lines decision next year, there will be another 1.2mn t. Bunkering in the Baltic region is developing very actively and I think there will be a very good demand for the supplies.

The main thing is that we have already started implementation of the second project “Arctic LNG-2”, the productivity is already 19.8mn t. We have a lot of communication with our industrial enterprises, more than 1trn rubles of orders ($15.2bn - OM) are expected at Russian enterprises.

Putin: This is from 2022 you plan to launch?

Michelson: Yes.

We started construction of a center for the construction of marine structures, where we plan to build platforms. The volume of our investments in the Murmansk region is about 120bn rubles (about $ 2bn - OM). And the first phase of this production run in the middle of this year.

There will be two docks, the dimensions are indicated, and this is how a liquefaction line with a size larger than 300m, 150m wide and 70m high will look like.
Novatek's strategy envisages today 57mn t of LNG production by 2030, but I say this today: there is already some kind of confidence. In a year or two, we will revise [strategy] upwards - up to 70mn t.

On the Northern Sea Route. We assume just within the framework of your May decree (bringing the cargo traffic along the Northern Sea Route to 80mn t) more than 50% - this is only our cargo, they will give more than 46mn t.
We are planning to make two transshipment centers: one in the Murmansk region, the second in Kamchatka.

And about the workload {for domestic industry –OM}. Last year two large conferences were held with our possible producers. More than 800 enterprises, we assume, will be involved in this construction.

We will create 12,000 jobs in Murmansk region, and in Russia - more than 80,000 jobs. According to our estimates, this will give for ten years every year 0.15% of {Russia’s – OM} GDP, that is a huge amount.

Putin: Good.