Rosneft and ExxonMobil have begun preliminary work on a joint liquefied natural gas plant to be built in the Far East by 2018, news reports said Thursday.
The oil giants have already begun selecting a contractor to complete the design and engineering work, Kommersant reported.
In 2013 and 2014 the companies intend to select liquefaction technology, define basic equipment requirements, complete civil-engineering surveys, and prepare the necessary legal documentation.
Rosneft head Igor Sechin said the project would strive to use far eastern and Russian companies and Russian equipment as much as possible while also drawing on international experience.
The two companies first announced plans to build an LNG factory in the Far East in April.
Sechin predicted that the first completed section of the plant would have a capacity of 5 million tons per year and be functional by 2018 at the latest, Interfax reported.
Rosneft's gas fields contain approximately 600 billion cubic meters of gas, Sechin said.
Constructing the plant will require an estimated investment of $15 million and is part of a growing relationship between Rosneft and ExxonMobil, who in April divulged plans to construct a second joint LNG plant in Alaska.
There is currently only one operational LNG factory in Russia, owned by a Gazprom-headed international consortium that produces $10 million tons of liquefied gas a year.
The Far East plant has been viewed as Rosneft's challenge to Gazprom's dominance in the emerging sector.
A 2006 law designated Gazprom the exclusive exporter of Russian gas, but both Rosneft and independent gas producer Novatek are currently lobbying to gain the right as well.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
