+44 207 394 30 90 (London)

AnAn Eyes Methanol Project In Russian Far East

Main » News Feed » AnAn Eyes Methanol Project In Russian Far…

Summa Group, a private Russian investment holding, reported signing a memorandum of understanding (MoU) on January 19 with the Singapore-registered company on the construction of the facility. The plant will be built on the eastern bank of the River Lena in the Yakutia region, near gas fields belonging to Summa’s subsidiary, the Yakutsk Fuel and Energy Co. (YATEC).

Denis Solomatin, the project’s general director, told Russia’s Vedomosti in September that the facility was due online in the first half of 2022. It will produce up to 1.75 million tpy of methanol for sale in Asia-Pacific markets, including China, Japan and South Korea. In October, YATEC reported that Denmark’s Haldor Topsoe had been hired to provide technology for the complex.

The project’s cost is estimated to be US$1.4 billion. YATEC intends to divest a 30-35% stake in the venture to a partner by the middle of this year.

Yakutia contains almost 14 tcm of natural gas in total reserves, but monetising these resources has been difficult, owing to scarce infrastructure and limited local demand. The region will be connected to the growing Chinese gas market once the Power of Siberia pipeline comes online in late 2019. But state-owned Gazprom is to have exclusive rights to the pipeline, leaving privately owned gas fields stranded without an export route.

YATEC operates a raft of gas fields and licences across western Yakutia with combined C1+C2 reserves of 203 bcm of gas and 14 million tonnes (126 million barrels) of condensate. The company lifted 1.7 bcm of gas and around 2,600 bpd of condensate in 2016 from its two producing assets – the Srednevilyuskoye and Mastakhskoye fields. Construction of the methanol plant is expected to raise the firm’s annual gas output by a further 1.4 bcm.

YATEC is one of several energy assets of Summa Group, whose majority shareholder is Dagestan-born billionaire Ziyavudin Magomedov. The gas producer turned a net profit of 923.1 million rubles (US$16.3 million) in the first half of 2017, on the back of 3.3 billion rubles (US$58 million) in revenues.

AnAn Group is understood to have the same owners as Shanghai-based conglomerate CEFC China Energy, which agreed to buy a 14.2% stake in Russian oil giant Rosneft in September last year for US$9.1 billion. The deal has not yet been closed, however.

Source: https://newsbase.com

MORE

EuroChem and Maire Tecnimont sign memorandum of intent for potential new urea and ammonia plant

EuroChem Group has signed an early works contract for a potential new urea and ammonia production facility, subject to further investment plan approval, at Kingisepp, northwest Russia, with Maire Tecnimont. Under the terms of the agreement, Maire Tecnimont will carry out preliminary engineering and site surveying work at the brownfield site adjacent to EuroChem’s existing…


Fertz major EuroChem nears decision on new ammonia, urea, and methanol plants

KINGISEPP (ICIS)–EuroChem is nearing a final decision on ambitious plans for new ammonia, urea, and methanol plants in northwest Russia to serve international markets, two executives from the Switzerland-headquartered fertilizer group disclosed on Tuesday. The green light for a 1m tonne/year ammonia facility; 1.1m-1.5m tonne/year granular urea plant; and a 1.8m tonne/year methanol manufacturing unit…


SOCAR, Tekfen sign memorandum on construction

A meeting was held on May 31 between Rovnag Abdullayev, President of Azerbaijan’s SOCAR, and Murat Gigin, Chairman of Turkey’s Tekfen, Trend reports referring to SOCAR. At the meeting, the parties signed a memorandum on the construction of a new carbamide plant in Azerbaijan. Based on the experience gained in the construction of the existing…