In February 2018, the State Duma considered that there was no need to expand the number of liquefied natural gas exporters so as not to create excessive competition for pipeline gas. This decision means a ban on the sale of gas abroad under the Pechora LNG project. After that, Rosneft actually decided to withdraw from the project.
About the project
The project provided for the production of hydrocarbons at the Kumzhinskoye and Korovinskoye fields, the creation of gas transportation infrastructure, the construction of a natural gas treatment plant and a liquefaction plant. In the future, it was planned to acquire additional deposits in order to expand the resource base of the enterprise.
To implement the project for the construction of a plant for the production of liquefied gas, the company "RN - Pechora LNG" was created. The shareholders were the Singaporean company CH Gas Pte ltd and RN-Gas, a subsidiary of Rosneft. The share of the Russian side was 50.1%, respectively,foreign partner's share was 49.9%.
The parties prepared a feasibility study that considered various plant locations (including onshore and floating). Also in the development of the project, it was planned to build complexes for deep gas processing. In 2017, it was reported that a number of major players with the necessary competencies in gas processing are showing interest in the project. And work is underway to attract a strategic partner.
Current state
After a virtual ban on gas exports by the decision of the Russian parliament, Rosneft began the process of exiting the project. As of August this year, the Russian share in the joint venture was reduced to a symbolic 1%. Now the Singapore side owns 99% of the Pechora LNG project.
Representatives of the national company reported that they see no prospects for participation in the project, they leave without any obligations and without actual losses.
