“A-property” albert Avdalyan, still did not have major competences in the gas business, expressed readiness to build a gas liquefaction plant with a capacity of up to 13 million tons on the sea of Okhotsk. The resource base will be deposits of Yakutia, which do not yet have tax benefits and related proven reserves. The cost of the project is estimated at $10 billion, including the construction of a pipeline stretching 1.3 million km — similar projects in the world are much more expensive. In addition, the “A-property” yet the right to export LNG. In case of realization of the project will give the possibility of Yakutian gas to enter the markets of Asia.A member of the “A-property” albert Avdalyan “Globaltek” announced the intention to build a gas liquefaction plant on the coast of the Okhotsk sea. The cost of the project “Yakut LNG” capacity to 13 million tonnes will exceed $10 billion, the company said may 5. The resource base must be a field of the Yakutian energy company (YATEK) belonging to “A property”. Commissioning of the first phase of the LNG plant is planned for 2025. Pre-FEED project to the end of this year to prepare French Technip, FEED should be ready by the end of 2021.”A-property” Ltd. gained control of YATEK, a former asset of the “Amount” Ziyavudin Magomedov, in 2019, after buying the rights of claim of other creditors. The total debt of the asset was estimated at 14 billion rubles. albert Avdolyan’s long — standing partner of Rostec on telecommunication projects and also the ogodzhinskoye coal project. In April, “A-property” has closed the transaction on purchase of Mechel’s Elga coal mine for 89 billion rubles, pay off also the debt of “Mechel” before the web.Of the Russian Federation in $107 million “A-property” Ltd has announced that Mr Avdolyan, along with the other co-founder Sergey Yota Donlevy intend to create a carbon cluster in Yakutia, which will include Ogodzha (part of partners is also part of “rostec” and “Sibantratsit” Dmitry Bosova), YATEK and port Vera in the far East. Forbes estimated his fortune albert Avdalyan in 2020 at $800 million. however, in permafrost, construction of the pipeline will cost an investor on average 1.5 times more expensive than the more gentle climatic conditions, according to the company. The construction of the pipe is likely to cost several billion dollars and will be one of the largest items of expenditure for the project, said Dmitry Marinchenko of Fitch, at the same time, in his opinion, $10 billion is a very conservative estimate — most likely, by results of survey works budget will grow.For comparison, a comparable LNG Canada project in British Columbia (the main shareholder is Shell), involving the construction of an LNG plant on the Pacific coast of Canada with a capacity of 14 million tons per year and the pipeline to it with a length of 670 km, is estimated at $31 billion, including the pipeline itself — about $5 billion of Resource b��zoy “Yakut LNG” will be deposits YFPC — Sredne-Vilyuysk, Masterskoi, Talinskoe and Titicachi. At the end of 2019 reserves YFPC amounted to 367 billion cubic meters of natural gas and 17 million tons of liquid hydrocarbons. The annual production is 1.7 billion cubic meters of gas and 100 thousand tons of gas condensate.Now resource base “Yakut LNG” has no tax benefits. In addition, the current inventory is clearly not enough for the project, assuming that the liquefaction of 13 million tonnes of gas per year to produce 21 billion cubic meters of marketable gas. With the average lifetime of the project in 30 years, stocks will thus have to exceed 620 billion cubic meters.The company said that current stocks will be enough to start the first phase with capacity up to 7 million tons per year, further plans to increase the resource base in existing and nearby fields. The company also said that in addition intends to build production facilities for gas condensate processing with the possibility of production of motor fuel or mini-LNG in Yakutia.Note that a similar plan for the transport of the Yakut gas on the Okhotsk sea coast in the village of Ayan in Khabarovsk Krai was a Chinese company Sirius Holding that even signed an agreement with the authorities of Yakutia (see “Kommersant” on 4 September 2019). The Chinese company planned to produce as a final product, LNG, and methanol, since the last export is not limited.Now that the company no, because Russian law allowed the export of LNG for projects in which on January 1, 2013, the mining licenses specify the direction of the gas liquefaction (in fact, it only licenses NOVATEK’s Yamal), or gas produced on the shelf. In “Globaltek”, “Kommersant” reported that after the feasibility study, the company intends to take the initiative to change existing legislation. We will remind that similar attempts to expand the list of projects with possible LNG exports, the past five years been engaged “Rosneft”, but so far without success.All lines “Yakut LNG” plan, the company will be located on the floating technological platforms, which the company intends to order at the shipyards in China or South Korea. Investor intends to transport LNG to Asia-Pacific markets for tankers, the number will also determine the process feasibility study.To assess the profitability of the project is not yet possible, because we do not know the final parameters, including the possibility of obtaining tax benefits, says Mr. Marinichenko. “If we can get a tax break and to hold investments in the fork $10-15 billion, the project will look competitive on the global cost curve. But in the Russian reality the possibility of its realization depends onquickly whether it is a “green light” and, perhaps, support from the state”— the analyst believes.Tatiana Woodpecker, Dmitry Kozlov

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