Russia Mulls Funding of Arctic LNG Port

The Russian government cannot decide on how to fund construction of the RUB100bn ($1.6bn) Utrenny port that will underpin development of Novatek’s Arctic LNG-2 terminal, local press reported July 11.

According to Moscow business daily Kommersant, the finance ministry wants funding to come from a national infrastructure fund, due to receive rubles 2.3 trillion ($36bn) from the budget between 2019 and 2024. However, deputy prime minister Maxim Akimov believes that additional budget sums should be drawn to drive the project.

The Utrenny port is to be located on the western shore of the Gydan Peninsula, by the Gulf of Ob. Its launch will be timed to coincide with the completion of the 19.8mn mt/yr Arctic LNG-2 project, scheduled for 2022-2023. It will also support the development of Russia’s Northern Sea Route (NSR).

State-owned Rosatom, which is overseeing the venture, has estimated project outlays at rubles 33bn in 2020, rubles 33.8bn in 2021 and rubles 33bn in 2022, Kommersant reports.

Rosatom subsidiary Atomenergomash and Novatek are working on high-tonnage liquefaction plant technology, under an agreement signed July 10.