Shtokman LNG project work to start within months

Sunday, 16 December 2007

“We should produce the first natural gas at Shtokman by July 2013, and everything should be prepared for the production of LNG by January 2014,” said Yuri Komarov, general director at Sevmorneftegaz, a joint venture established by Russian gas giant Gazprom and state-owned oil company Rosneft to develop the Shtokman project.

Gazprom has a 51 percent stake in the project development company, while France's Total and Norway's StatoilHydro have 25 percent and 24 percent respectively. StatoilHydro was selected as a partner on October 25.

The venture plans to exploit the Arctic gas field’s estimated reserves of 3.7 trillion cubic meters. Under current plans it will supply pipeline gas to Europe and LNG to North America.

 “We have selected a construction site in the village of Teriberk,” said Komarov.

The official told Russian news agency RIA Novosti that the companies involved in the Shtokman development were currently drafting legal documents for the project construction.

 Yuri Yevdokimov, governor of the Murmansk Region, said the new onshore plant site would have “serious social infrastructure.” This would include 28 four-story apartment blocks, two kindergartens, three schools, as well as clinics and swimming pools.