LOC10:45
07:45 GMT
TOKYO, Feb 22 (KUNA) -- Russia's state-run Gazprom, the world's largest gas
producer, decided to build a plant for liquefied natural gas (LNG) near the
city of Vladivostok, far east of the country, with a hope that it would start
operations in 2018 in order to boost shipment to Asia.
After examining the basic plan as well as the profitability of the plant,
the Russian gas monopoly concluded on Thursday that the project in the city of
Vladivostok is feasible, the Nikkei Shimbun said. Gazprom also plans to set up
a company by the end of next fiscal year for building the plant, the newspaper
said.
The plant is expected to produce a maximum of 150 million metric tons of
LNG per year. Last September, Gazprom and the Japanese government signed a
memorandum of understanding to cooperate on the early construction of the
plant.
Gazprom has already agreed in principle to build the plant in Vladivostok
jointly with Japanese partners, including Itochu Corp. and Japan Petroleum
Exploration Co. The decision is seen as Gazprom's indication that it would
like to execute an official agreement on joint construction with these
partners, the report added.
Japan is the world's No. 1 LNG importer, taking in a record 87.3 million
tons in 2012. Following the nuclear accident at the Fukushima Daiichi power
plant in March 2011, demand for LNG from Japanese utilities for thermal power
generation has surged. (end)
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KUNA 221045 Feb 13NNNN