MOSCOW, May 20 (RIA Novosti) – Russian energy giant has proposed a share in its planned liquefied natural gas (LNG) plant in Vladivostok, in Russia’s Far East, and contracts for LNG deliveries to Chinese companies, the Vedomosti newspaper reported Tuesday.
Chinese companies are likely to become Gazprom’s partners in the plant’s construction project, a source close to a participating party at talks told the newspaper. The plans have been also confirmed by a federal official.
The talks are at an early stage, the newspaper’s sources said without giving further details. The issue is expected to be discussed during the visit of Russian President Vladimir Putin to China, beginning Tuesday.
The China National Petroleum Corporation (CNPC) could become Gazprom’s partner in the project, the sources told the newspaper.
The price is likely to be the same as for the LNG supplies from the Sakhalin 2 project to Japan, which stood at $512 per 1,000 cubic meters last year. Pipeline gas could become cheaper for China, with the price expected at around $360-400 per 1,000 cubic meters.
The Russian energy giant could propose a 49 percent share in the project to its foreign partners, Vitaly Markelov, Deputy Chairman of the Management Committee, said earlier.
According to Markelov, to enter the project, foreign companies will have to buy at least 6 million tons of LNG per year.
Several years ago, Gazprom offered a share in the Vladivostok LNG project to Japanese companies, Itochu, Japex, Marubeni, Inpex and Cieco, but the talks ended in failure.
