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Gazprom´s megaproject has started. Construction of a complex for processing ethane-rich gas has begun in Ust-Luga

This enterprise is of great significance for Russia's economic development, the plant will make it possible to increase Russian exports of LNG and LPG. The production of ethane, which is in high demand in the domestic industry, will grow substantially

Gazprom´s megaproject has started. Construction of a complex for processing ethane-rich gas has begun in Ust-Luga

St. Petersburg, May 21 - Neftegaz.RU. Alexander Novak, Russian Deputy Prime Minister, Alexey Miller, Gazprom CEO, and Konstantin Makhov, General Director of RusGazDobycha, took part in the solemn event.
The honorary guests of the ceremony were the Governor of the Leningrad Region Alexander Drozdenko and the Chairman of VEB.RF Igor Shuvalov.

A. Novak said:
  • This is a very promising market in the world, Russia can take a leading role here, having the opportunity to increase its own share in the global LNG market to 15-20%, in the oil and gas chemistry market-to 6-7%
The complex will be the largest gas processing enterprise in Russia and one of the most powerful in the world in terms of processing (45 billion m3 of gas per year), as well as the leader in the production of LNG in northwestern Europe. (13 million tons of LNG per year).

The project operator is RusKhimAlyans, a special-purpose company established on a parity basis by Gazprom and RusGazDobycha.
RusGazDobycha CEO noted:
  • The creation of a gas-chemical complex is a unique project for Russia, providing production of high-margin products
About 18 billion m3 of gas after processing will be sent to the gas transmission system of Gazprom.
The ethane produced at the plant is to be supplied to a high-potential gas chemical facility (a project by RusGazDobycha), which will be producing over 3 million tons of polymers per year.

Igor Shuvalov said:
  • VEB.RF, in partnership with Gazprom and RusGazDobycha, is involved in the preparation and launch of the Ust-Luga project, one of the largest in the world
  • Financing of VEB.RF allowed us to start work on the site in time
The raw material base for the gas processing complex will be natural gas with a high content of ethane.
Such gas will be supplied to the enterprise from the fields of the Nadym-Pur-Taz region of the Yamal-Nenets Autonomous District, and later the Tambeyskoye field will be used.
Gas production from Tambeyskoye will commence in 2026.

Gazprom CEO Alexey Miller said:
  • Here in the northwestern part of Russia, in the Leningrad Region, we have launched the construction of a fundamentally new and high-tech industrial cluster
  • It is essential for the region and the country at large
  • Advanced processing is the most efficient way to maximize the potential of the immense reserves of ethane-containing gas in Russia
In addition to LNG, its commercial products will include ethane fraction, liquefied petroleum gases, and pentane-hexane fraction.
It is expected to put the 1st train of the complex into operation in the 4th quarter of 2023 and the 2nd train in the 4th quarter of 2024.

To read the full story in Russian

Author: Elena Alifirova

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