Cryogas-Vysotsk is the third largest Russian LNG plant (the other two are the Sakhalin-2 plant and the Yamal LNG plant). The complex, located at the port of Vysotsk, includes three main facilities: a plant with capacity of 660,000 tonnes of LNG a year, a 43 km long gas pipeline connection to the Leningrad-Vyborg-State Border gas main, and docks for LNG shipments.
The company plans to supply LNG to the domestic market for gas-engine fuel and to provide gas to consumers that are far from centralised gas supply systems. The plant will also supply gas to countries in northern Europe, Scandinavia and the Baltic Region.
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President of Russia Vladimir Putin: Good afternoon, friends.
Today we are launching the first shipment of LNG at the new Cryogas-Vysotsk plant. I would like to congratulate all those who have been and will be involved in this on this significant event.
First, I would like to thank you for your hard work, for carrying out the plans you set for yourselves. Moreover, all of this has taken place in a short period of time: a modern high-tech plant has been built and quality jobs were created. The first stage of the plant, which has a capacity of 660,000 tonnes of LNG per year, was put into operation in March this year. As I understand it, there are plans to launch the second stage with a capacity of over 1,100,000 tonnes of LNG per year. It is expected to be in operation late next year.
There is no doubt that the plant will have a bright future. The global LNG market is making rapid headway: the demand for LNG is steadily growing both in this country and the rest of the world. I would like to emphasise that Russia will consistently build up its gas liquefying capacities so as to occupy a befitting niche in this market. It would be no exaggeration to say that there are enormous, colossal prospects here. This includes the growth of exports and the use of LNG for fuelling and bunkering operations in the Baltic and other areas. We know well that new international rules aimed at countering the pollution of seas by marine vessels will come in force in 2020. This opens up very good prospects for us.
And, of course, the absolute priority for us is the widespread use of LNG as an engine fuel that is eco-friendly and cost effective at home for supplying remote regions with gas, as well as for the needs of transport, housing and utilities, and more. I hope that federal agencies, regions and domestic businesses will play a very active role in these efforts. They are all represented by our three colleagues here.
In conclusion I would like to thank everyone and congratulate all of you on today’s event – all those who worked to make it happen. I hope that the number of such high-tech production lines in our industry as at Cryogas-Vysotsk will continue to grow.
Naturally, I wish you success and new achievements. Thank you very much.
Go ahead, please.
Chairman of the Management Board of NOVATEK Leonid Mikhelson: Thank you very much!
Mr President, in cooperation with Gazprombank, NOVATEK built the first stage of the complex to produce 660,000 tonnes of LNG per year. We are ready for the first official shipment. Allow me to show you a small clip on the project.
Vladimir Putin: Go ahead, please.
(Shows video clip.)
Leonid Mikhelson: The volume of investment in this complex exceeded 57 billion rubles. We attracted only Russian contractors and many Russian equipment manufacturers. Localisation for the first stage was 65–70 percent. Importantly, this is the first time that we, including REP Holding, managed to source refrigerant compressor production here in Russia. As you mentioned, the second stage will reach a capacity of over 1,100,000 tonnes, and I think this stage will include about 90–95 percent localisation.
The production of this complex is oriented towards the Baltic region. It will primarily supply the bunkering and fuelling of ships, fuel for motor transport and gas for residential consumers that are too far from the gas distribution system.
Chairman of the Management Board of Gazprombank Andrei Akimov: Mr President, the launching of this plant in Vysotsk is another impressive testament to the fact that despite everything, the Russian economy in making steady headway and that Russian companies can carry out large-scale, high-tech, and important projects.
Leningrad Region Governor Alexander Drozdenko: Mr President, this is the second major project that we are carrying out in cooperation with NOVATEK and other partners in the Leningrad Region. The first project was implemented in Ust-Luga. The most important point is that considering the Leningrad Region’s newly adopted law on transport tax reductions for vehicles that convert to NGV (natural gas vehicle fuel), we are starting a new programme – a step-by-step conversion of road and city equipment, and public transport to LNG, to natural-gas vehicle fuel.
Leonid Mikhelson: Mr President, the plant is ready to start loading. Will you allow me to start the loading process?
Vladimir Putin: Please do.
Leonid Mikhelson: The loading has been launched.
Vladimir Putin: Colleagues,
Let me congratulate you on this occasion once again.
I am very pleased to note that the Leningrad Region is developing – now I would like to say a few words about this constituent entity – and generally achieving good results. Of course, there are still many challenges but if the regional authorities support the implementation of projects like this, and not just in energy but also in other areas, we will be moving towards the implementation of the national projects I have talked about many times and which have been duly formulated by the Government. We face a lot of work in this respect.
But of course, the development of industry, especially such important, fundamental industries as energy, plays a key role in achieving the goals that we have set for ourselves.
I would like to thank Gazprombank for its support of this project. Naturally, I am referring to the company’s management, engineers, workers and designers – all those who took part in this project. I hope this is not the last time we meet under such circumstances. I know the company has big development plans in various areas. We will support and help you. I hope you will continue working just as actively and producing results.
Thank you very much.