Accounts Chamber of Russia finds some costs over-run under Yamal-LNG project
The Accounts Chamber of the Russian Federation has found out that actual operating costs of the customer-developer’s office under Yamal LNG project make 10% of the capital investments instead of 2% set by the business-plan, press center of the Accounts Chamber says.
The Board of the Accounts Chamber chaired by Tatyana Golikova considered the interim results of the control activity “Audit of the use of NWF resources allocated for financing of the infrastructure project on construction of facilities for production and preparation of gas, LNG plant and a terminal for shipments of LNG and gas condensate from the South-Tambeyskoye field on the Yamal peninsula”. The Audit was initiated by the State Dum of the Russian Federation. The results were announced by auditor Valeriy Bogomolov.
According to him, the self-recouping infrastructure project is being implemented by JSC Yamal LNG currently owned by NOVATEK (60%), TOTAL (20%) and CNPC (20%).
Valeriy Bogomolov says the construction of the facilities under the project is supposed to be completed in 2019 while the operation is to commence in 2017. “This project will let Russia boost up LNG production and ensure the development of the Northern Sea Route. It will also contribute to the development of port and transport infrastructure in the region,” the auditor said.
According to Valeriy Bogomolov, the costs under the infrastructure project in 2005 - 2015 totaled RUB 446.7 bln (35% of planned costs) including RUB 75 bln from NWF (12% of total financing), RUB 371.7 bln – resources of the project shareholders (no borrowed funds were raised). He says total investments into the project through 2018 are estimated at RUB 1.27 trillion including RUB 1.02 trillion of capital investments.
The auditor emphasizes that state resources are used by the company exclusively for purposes specified by the project charter. He also says that all design documentation required under the self-recouping infrastructure project was developed and obtained the state expert approval.
The audit also found out that actual operating costs of the customer-developer’s office under Yamal LNG project make 10% of the capital investments instead of 2% set by the business-plan.
The Board of the Accounts Chamber will submit the information on basic results and the report on the control activity to the Chambers of the Federal Assembly of the Russian Federation.
Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 mln t of liquefied natural gas and 1.2 mln t of stable gas condensate based on the feedstock resources of the South-Tambeyskoye field. The Project also requires the construction of transport infrastructure including a seaport and an international airport located at Sabetta (north-east of the Yamal Peninsula).
Under the RF Government Directive dated November 5, 2013 (No 2044-r) “On approval of the list of self-recouping investment projects, whose financial assets receive those of the National Wealth Fund and/or pension savings being managed by a state trust company, on a payback basis” Yamal LNG Project is to be provided with up to RUB 150 bln from NWF.
