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Liquefied natural gas plant to be built in Arkhangelsk

Governor of the Arkhangelsk Region Igor Orlov and General Director of the state-owned corporation Rostec Sergey Chemezov yesterday signed a cooperation agreement on development of the fuel and energy sector infrastructure based on the liquefaction of natural gas. A key modality of the agreement is construction of liquefied natural gas (LNG) production facilities with a capacity of up to 120,000 tons of LNG per year.

The agreement is aimed at implementing the new May Decree of the President of the Russian Federation and envisages the formation and implementation of a special comprehensive programme in the field of modernization and development of the fuel and energy infrastructure using natural gas liquefaction technologies.

It is assumed that LNG produced at the plant will be used to develop the fuel and energy complex of the Arkhangelsk Region as well as related industries.

In particular, the agreement imposes: (1) renovation of existing diesel power plants in the remote areas of Mezen and Leshukonsky districts with no centralized power supply – with their switch to LNG; (2) switch of about 20 municipal and private boiler plants from expensive fuel oil, diesel fuel and coal to LNG.

In addition, the plans envisage autonomous gasification of more than 10 thousand apartments, house and farms, settlements, as well as the switch of about 550 public transport vehicles to LNG, special and other equipment to natural gas motor fuel, including LNG, and establishment of appropriate gas stations.

As part of the agreement, it is also planned to create an appropriate service system for the supply, maintenance and repair of new facilities.

As the Governor of the Arkhangelsk Region Igor Orlov noted, the region consistently implements measures aimed at reducing the consumption of coal, fuel oil and diesel fuel and the switch to more environmentally friendly fuel.

"Cooperation with Rostec Corporation will be a logical continuation of this work and will allow making an evolutionary step in the development of not only the fuel and energy infrastructure, but also a variety of other associated areas", said Igor Orlov, "We have a great potential for the use of LNG and the shift to it will not only increase the energy security of the region and reduce dependence on expensive transported fuel, but also create qualitatively new conditions both for human life and development of the territories".

The total volume of investments in the project will amount to more than 14 billion roubles by 2024.

Commenting on the signing of the agreement, Maxim Vybornykh, State Secretary of the Rostec Corporation, said: "Addressing the concern of power supply of remote territories through distributed generation is a strategic national task set by the President. This can be achieved through the development of infrastructure for liquefied natural gas – a more economical, environmentally friendly, safer and easily transportable alternative to conventional fuels. The pilot project in the Arkhangelsk Region is an important step in this direction".

Press Office of the Governor and Government of the Arkhangelsk Region