Construction of Yakutsk gas processing and gas-chemical  complex (business idea)

Location
  • Lensky region, Sakha Republic (Yakutia)
Project initiator
Project characteristics
  • Launching of gas processing enterprises producing synthetic hydrocarbon products.
  • Capital investment for construction of the gas processing and gas chemical complex are to cover costs of
    •  purchasing gas processing equipment,
    • helium liquefaction,
    • ethylene processing, 
    • light hydrocarbon wide fractions processing,
    • construction of underground helium storage,
    • stationary installations for liquid helium storage,
    • compressor stations for pumping helium into storage and methane feed from the complex into the trunk.
Annual marketable products production volume:
  • methane – 16.9 bn cub.m.,
  • helium – 11.6 mn l,
  • polypropylene – 330.0 ths tons,
  • butane – 200.0 ths tons,
  • stable gasoline (fraction С5+) – 110.1 ths tons,
  • low density polyethylene – 295.1 ths tons,
  • high density polyethylene – 177.1 ths tons,
  • low density linear polyethylene – 295.1 ths tons.
Volume of investment
  • RUR 35150 m ($ 1237,7 million) (reviewed by “Justification of investments into development of Chayanda field, gas transportation and processing”, to be complete by July 2011).
Infrastructure available
  • At Talakan field (in immediate vicinity to Chayanda GCF) there is a gas turbine station owned by OAO Surgutneftegaz. It is possible to use its facilities for power supply of Chayanda GCF facilties.
  • From river berths in settlements of Vitim and Peledui there is a concrete motorway to Talakan GCF (which is in immediate vicinity to Chayanda field), owned by OAO Surgutneftegaz.
  • Route of “Chayanda-Khabarovsk-Vladivostok” main gas pipeline.
  • “Chayanda  - Lensk – Olyokmonsk – Aldan – Berkakit – Tynda – Skovorodino – Blagoveschensk – Khabarovsk – Vladivostok” (along ESPO). 
  • Electrical power is supplied to Lensk region by two HVL-110 kV Mirny-Lensk.
  • Developed deposits of widespread mineral resources (pits) are available, as well as HVL-220 kV “Suntar-Olyokminsk” and HVL-220 kV Neryungri Regional Power Station – Nizhny Kuranakh – Tommot – Maya – ESPO service drives.
  • Under construction are HVL 220 kV “Chernyshevsky – Mirny – Lensk – Peledui (double circuit)” and VILYUI federal motorway on route Mirny – Lensk – Peledui – Vitim – Nepa – Ust-Kut.
Infrastructure required
  • Construction of railway Lena station – Nepa – Vitim – Lensk is needed.
  • Construction of power and transport infrastructure:
Cost of project
  • RUR 35150 m
Implementation period
  • Updated
IRR
  • 23.10%
NPV
  • RUR 24 050 m
Payback period
  • 10 years
Markets
  • Responding to growing demand for polymer products in Russia, entering high-capacity polyethylene market on the US Pacific coast and rapidly growing East and South-East Asian markets, helium exports to the Asian-Pacific countires.
Investor’s involvement
  1. Partnership as a strategic partner with a share in charter capital.
  2. Project financing.
  3. Establishment of long-term of syndicated loans.
Project detailedness
  • A part of Integrated Development of Southern Yakutia project;
    • feasibility report available.
  • “Justification of investments into development of Chayanda field, gas transportation and processing”
    • (to be complete in III quarter of 2011) being worked out.
CEO of an organization implementing the project

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