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    Russia Clears Support For Gydan Port: Press

Summary

The support should help the developers of the Arctic LNG-2 project take a final investment decision.

by: Joseph Murphy

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Russia Clears Support For Gydan Port: Press

Russian prime minister Dmitry Medvedev has reportedly signed a resolution allocating rubles 103.6bn ($1.6bn) in state support for the construction of an Arctic seaport.

Under the decree, funds will be released between 2019 and 2022, Moscow business daily Kommersant reported on July 31. They will cover the bulk of the cost of building the Utrenny port on the Gydan Peninsula, projected to require rubles 144.2bn in total.

Utrenny will serve the 19.8mn mt/yr Arctic LNG-2 export terminal, which Russia’s Novatek hopes to bring online by 2023. France’s Total, China’s CNPC and Cnooc and Japan’s Mitsui and Jogmec are also involved in the LNG venture. The government's approval of support should help Arctic LNG-2's developers reach a final investment decision (FID) – a move expected in the third quarter.

The port will also handle general cargo traffic along Russia’s Northern Sea Route (NSR), which Moscow is aiming to expand the usage of rapidly.

It is understood there was previously some disagreement in government over how Utrenny’s construction would be financed – whether directly from the state budget or from a special infrastructure fund. A copy of the decree seen by Kommersant also notes that work on developing an access channel leading to the port should start this year.