MOSCOW (MRC) -- Rosneft and ExxonMobil are progressing on their proposed LNG project in the Russian Far East with the launch of the contractor selection process for design and engineering work, according to Hydrocarbonprocessing.
Rosneft and ExxonMobil said that in 2013 and 2014, they plan to complete design work, including selection of a liquefaction technology and identification of major equipment requirements.
Also in that timeframe, the companies plan to perform engineering surveys and develop front-end engineering and design (FEED) and Russian Proyekt documentation for the LNG plant, hydro-technical marine facilities and a source gas pipeline.
“Rosneft’s offshore license areas hold massive hydrocarbon resource potential, most of which is natural gas," said Rosneft president Igor Sechin. "Given the fact that offshore fields are difficult to reach and are not connected to the national gas supply system, the most efficient way to monetize these resources is to liquefy the natural gas and sell the LNG in export markets."
Capacity of the LNG project to be located on Sakhalin Island in the Russian Far East is expected to be 5 million tpy, subject to further expansion. The liquefaction plant, the launch of which is scheduled for 2018, will receive natural gas from Rosneft’s reserves in the Far East and other Sakhalin gas reserves.
We remind that, as MRC informed previously, in May 2013, Rosneft and Mitsui signed an agreement to jointly develop the massive Far East Petrochemical Company (FEPCO) project. FEPCO, a subsidiary of Rosneft, is developing the project. Processing capacity of the petrochemical complex is planned at 3.4 million tpy of hydrocarbon feedstock, predominantly naphtha. The capacity of ethylene and propylene production unit is planned at 2 million tpy. The complex is expected to be started up in 2017.
MRC