Kysyl-Syr-Amga-Ayan Gas Pipeline

From Global Energy Monitor
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Kysyl-Syr-Amga-Ayan Gas Pipeline (also known as Yakutiya LNG project; Russian: Газоповод "Кысыл-Сыр-Амга-Аян") is a proposed gas pipeline in Russia.[1][2]

Location

The pipeline is proposed to run from Kysyl-Syr, Sakha Republic, to Ayan, Khabarovsk Krai, Russia.[1]

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Project details

Background

The pipeline is intended to transport gas from existing gas fields (Srednevilyuiskoye, Mastakhskoye, Tolonskoye, Tymtaidakhskoye gas condensate fields, and other licensed areas of YATEC PJSC) to an LNG refinery in Ayan, Khabarovsk Krai.[1][2] The project will involve construction of a gas pipeline from central Sakha-Yakutiya (sections Kysyl-Syr - Amga and Amga - Ayan) to the coast of the Sea of ​​Okhotsk, construction of 3 intermediate compressor stations and potential connection of 14 residential areas to gas supply.[8][3]

The project involves two phases:

Phase 1: Construction of an 8.9 mtpa LNG plant (2 x 4.5 mtpa trains), gas condensate production will amount to 0.8 million tons/year. Construction of the 1358-km pipeline to Ayan in Khabarovsk Territory with two compressor stations, drilling more than 100 wells for production of 15 bcm/year of gas.

Phase 2: Increase LNG production capacity up to 18 mtpa, and for condensate - up to 1.5 million tons/year, increase gas production capacity - up to over 28 bcm/year and add one more compressor station.[3]

In January 2022, a consortium consisting of Japan’s JGC and Norway’s Aker Solutions has won a front-end engineering design contract for the project.[4] Design work has already started and is expected to last 2 years. A-Property expects to take a final investment decision on the first phase of the project at the end of 2023 and to complete the project by 2027.[4] As of July 2023, the front-end engineering design is ongoing and is expected to be completed in the fall of 2023.[8] YATEC continues to search for a strategic partner for the implementation of the project.[3] According to the company's 2022 Annual Report, the Yakutiya LNG project is under development. With the launch of the project, YATEC hopes to begin LNG supplies to the markets of China, India, Japan and South Korea by 2035.[9]

In March 2024, it was reported that Globaltec had fulfilled its tasks of contracting surveys and a front-end engineering design study on the planned LNG facility and passed all related technical documentation to Yatek.[5] The project was included in the "List of Planned Transmission Gas Pipelines" released by the Ministry of Energy of Russia in March 2024.[10] As of July 2024, there have not been any further updates.

Competing proposal

In March 2024, the Yakutia regional government said that in anticipation of higher gas production in the region, plans have been drafted to build a mid-scale LNG plant with an initial capacity of 175,000 tpa, and with further phases bringing its ultimate capacity to 525,000 tpa. The aim of this local facility — dubbed LNG Yakutia — is to deliver LNG to local customers without access to pipeline gas, and to export LNG in cryogenic rail cars to China.[5]

Ownership

The project's developer is Globaltec LLC. 51% of Globaltec LLC belonged to A-Property, with the remaining 49% owned by YATEC PJSC. A-Property also controls YATEC. According to YATEC's data as of September 2023, A-Property is 100% owned by Russian magnate Albert Avdolyan, while YATEC itself is owned by Avdolyan and his partners.[6]

In January 2022, it was reported that Zhejiang Energy of China was planning to buy a 10% stake in the Yakutiya LNG project in January 2022. This included stakes in both YATEC itself and Globaltec.[11] However, there have not been any updates on whether the deal had been finalized.

According to Russian corporate registry records, in March 2024, Avdolyan passed control of Globaltek to a Russian individual identified as Andrey Ni, with the switch taking place after Globaltek was included in February 2024 on an updated list of companies targeted by US sanctions imposed in response to Russia’s invasion of Ukraine.[5]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 "Pеспублика Саха и Хабаровский край". Globaltec. 2021. Retrieved Jul 7, 2022.{{cite web}}: CS1 maint: url-status (link)
  2. 2.0 2.1 "Sakha Republic and Khabarovsk Krai". Globaltec. 2021. Archived from the original on Jul 7, 2022. Retrieved Jul 7, 2022.
  3. 3.0 3.1 3.2 3.3 3.4 "ЯТЭК продолжает поиск партнера для реализации проекта Якутский СПГ". NefteGaz.ru. July 6, 2023. Retrieved July 24, 2023.{{cite web}}: CS1 maint: url-status (link)
  4. 4.0 4.1 4.2 4.3 4.4 4.5 4.6 "Aker Solutions and JGC win Yakutia LNG gig in Russia". LNGprime.com. Jan 25, 2022. Retrieved Jul 7, 2022.
  5. 5.0 5.1 5.2 5.3 "Billionaire transfers control of key Russian LNG project to unknown operator". www.upstreamonline.com. March 28, 2024. Retrieved July 15, 2024.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "Авдолян продал SPV "Якутского СПГ"". Interfax. March 27, 2024. Retrieved July 15, 2024.{{cite web}}: CS1 maint: url-status (link)
  7. "Особенности и проблемы пространственного развития восточной газотранспортной системы России". energypolicy.ru. June 16, 2024. Retrieved July 15, 2024.{{cite web}}: CS1 maint: url-status (link)
  8. 8.0 8.1 "В Якутии построят газопровод от Кысыл-Сыра до побережья Охотского моря". YakutiaMedia.ru. March 3, 2023. Retrieved July 24, 2023.{{cite web}}: CS1 maint: url-status (link)
  9. "YATEC 2022 Annual Report" (PDF). YATEC. July 3, 2023. Retrieved July 24, 2023.{{cite web}}: CS1 maint: url-status (link)
  10. "ПЕРЕЧЕНЬ МАГИСТРАЛЬНЫХ ГАЗОПРОВОДОВ, ПЛАНИРУЕМЫХ ДЛЯ РАЗМЕЩЕНИЯ". Судебные и нормативные акты РФСудебные и нормативные акты РФ. March 12, 2024. Retrieved July 15, 2024.{{cite web}}: CS1 maint: url-status (link)
  11. "China's Zhejiang Energy to buy stake in Russia's Yakutia LNG project". lngprime.com. January 21, 2022. Retrieved July 15, 2024.{{cite web}}: CS1 maint: url-status (link)

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