Siberia Has Built the First LNG Facility

Jul 18th, 2017

In 2015, Gazprom urged the creation of big gas consumers market in the Siberian region. This sensitive task was given to Kemerovo region authorities. To begin with, the region had to construct a plant for the production of liquefied natural gas. The launch of the first LNG plant in Siberia was scheduled for August 2016; however, delays in receiving government approvals changed the delivery terms.

In early July 2017 Dennis Snitskiy, CEO of Sibir-Energo, reported about the launch of an LNG plant in Novokuznetsk District, Kemerovo region. The capital of the new project is 1 billion rubles. The plant capacity is 18 million cu.m of LNG per year with the prospect of the further increase of the production capacity by 3-4 times. The maximum annual production volume of LNG after expansion of capacity will be 84 million cu.m. A Siberian LNG plant employs over 40 workers whose average salary is 45 thousand rubles.

According to Sibir-Energo management team, liquefied gas produced at Novokuznetsk facility can be applied to the manufacture of motor fuel and used in the autonomous gasification and alternative energy sector, the demand for which in this region is quite high. The Governor of the Kemerovo region states that the plant is highly required for the development of Kemerovo coal industry. Liquefied gas produced at this facility will allow mining equipment switch to gas fuel which will reduce the cost of coal production by 40 % since the use of gas will increase the life of the motor by 1.5 times and reduce motor oil consumption by 40%. The amount of liquefied gas is enough to fill 40 BELAZ carriers with the carrying capacity of 90 tonnes or 160 coal trucks.

For the present, Sibir-Energo has signed preliminary agreements for LNG supply with the five leading coal companies of the Kuzbass region.