Xinxing Far East Corporation to build LNG plant and terminal for handling of LNG and LPG in Primorye
Investments into the project are estimated at about RUB 490 billion
When speaking at the working meeting at the Far East and Arctic Development Corporation (FEADC), Li Shaoshi, General Director, Xinxing Far East Corporation LLC (subsidiary of Zhongyu Xinxing) told about preparations for construction of a large plant for production of liquefied natural gas at the Pyati Okhotnikov Bay of the Primorsky Territory’s Shkotovsky District for production of 7 million tonnes per year and a seaport (gas terminal Valentina) for handling of 7 million tonnes of LNG and 1 million tonnes of LPG per year, says press center of FEADC.
The facilities are to be put into operation 2027. Investments into the project are estimated at about RUB 490 billion.
Geological, geodesical and archeological survey has been conducted under the project. Specifications for connection to electricity network have been obtained from ad hoc organizations. Feasibility study and development of design document is underway. A customs control zone is foreseen by the project. A railway line is to be built. Xinxing Far East Corporation is currently selecting a general contractor.
According to Li Shaoshi, LNG imports and consumption in China is to show a stable growth in the foreseeable future which suggests high prospect of the project. “We are going to account for about 10% of the total LNG imports in China when all the facilities are fully operational,” said General Director of Xinxing Far East Corporation and thanked FEADC for its permanent support of the company’s investment initiatives.
With the assistance of FEADC, the investor is going to obtain a status of Freeport of Vladivostok resident.
The parties also looked into a possibility of using Russian equipment and technologies in implementation of the projects, apart from the earlier planned equipment of foreign origin. The agenda of FEADC meeting also included establishment of Russia-China barter trade and inclusion of the company representative into the Russia-China Business Council.
“Chinese investments have always been welcome in the Far East and they are especially needed today. As a reliable partner we are happy to continue our economic and investment cooperation,” said Darya Kiryanova, Deputy General Director, Far East and Arctic Development Corporation, adding that energy and industry are among the priorities in the region.
