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Navy forbids Novatek to build a terminal in Kamchatka

Navy forbids Novatek to build a terminal in Kamchatka

The Navy does not give NOVATEK permission to build a terminal on the regasification of liquefied natural gas (LNG) in Avachinskaya Bay on the Kamchatka. This was announced at a plenary meeting in the Federation Council by the deputy chairman of the board of the company Denis Soloviev.

He said that the company chose a place for the terminal, but received a letter from the Navy stating that it was not possible to place a floating regasification terminal at this place. As reported RBC, Solovyov said that NOVATEK is working with the Ministry of Defense, it is considering the possibility of gasification of the department’s facilities on the peninsula, so the company does not yet see great difficulties.

NOVATEK intends to build a transshipment terminal in Bechevinskaya Bay in Kamchatka by the end of 2022, where liquefied gas will be loaded from ice-class gas carriers into LNG tankers. In the process of transshipment, stripping gas is generated, and they intend to send it to Petropavlovsk. It was planned to regasify it at the terminal in Avachinskaya Bay.

NOVATEK needs the LNG offshore transshipment complex in Kamchatka to reduce the number of expensive ice tankers for passage along the Northern Sea Route. The company twice asked the government for support, at first it was about 28 billion rubles, but the authorities could not find money for this project and did not include it in the budget for 2020-2022. Then the amount decreased up to 20 billionbut the government reiterated that there was no money. At the end of 2019, authorities decided on the sources priority infrastructure financing for NOVATEK's projects in Kamchatka and Murmansk. The total cost of the federal part of the projects will amount to 168,5 billion rubles.

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