Novatek to raise spending on Utrenny LNG terminal by 20.3 bln rbl

MOSCOW, Mar 3 (PRIME) -- Russian independent gas producer Novatek will raise spending on the Utrenny liquefied natural gas (LNG) terminal by about 20.3 billion rubles to 164.1 billion rubles, as seen by PRIME in the government’s draft ruling published on Tuesday.

Budget money will account for 103.2 billion rubles, and private money for 60.9 billion rubles.

The launch was delayed to 2024 from 2022, according to the document, while a Novatek representative told PRIME that the delay happened because the company wanted to expand LNG capacities and it does not mean a delay in the launch of the Arctic LNG-2 scheduled for 2023.

“In accordance with the project documentation…the facilities of the Utrenny terminal that are in federal ownership will be built in 2022 and their cost will not grow. The launch date of the investor’s facilities were adjusted due to a decision to expand LNG capacities for future projects of the company. The deadline for the launch of the Arctic LNG-2 remained the same,” the representative said.

Under the company’s 2030 strategy, it will expand LNG capacities to 57 million tonnes, but CEO Leonid Mikhelson said previously that the figure may be upgraded to 70 million tonnes.

(66.3274 rubles – U.S. $1)

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