Medium-tonnage LNG plant to be built in Yakutia by 2029 for gas supplies to Trans-Baikal - authorities

YAKUTSK. Sept 2 (Interfax) - A medium-tonnage liquefied natural gas (LNG) plant will be built in Yakutia in 2026-2029, the regional authorities' press service said.

It is planned LNG production will be organized in the Megino-Kangalassky district. The project provides for the construction of a medium-tonnage plant with its own gas power plant.

"The plant's capacity will be 175,000 tonnes per year, with a subsequent increase to 525,000 tonnes," the head of Yakutia, Aisen Nikolayev, was quoted as saying by the press service.

Investment in the project and the sources of financing are not specified.

The plant will be built as part of cooperation between Yakutia and Trans-Baikal Territory in the field of LNG supplies. The corresponding agreement was signed on the sidelines of the 11th Eastern Economic Forum.

Fuel supplies to Trans-Baikal Territory will be carried out by rail.

"For Yakutia, this means, firstly, an additional amount of gas sales and, accordingly, tax revenues to the budget. Secondly, it means the utilization of the Yakut Railway in the opposite direction. The mainline is beginning to work not only on importing goods as part of the northern delivery, but also on exporting them from the republic. Not only coal, but also high-tech LNG will be transported by rail, which makes this direction extremely profitable and promising," the press service quoted the CEO of JSC Yakutian Railway , Vasily Shimokhin, as saying.

Yakutian Railway's participation in the project will allow the technical aspects of transportation to be promptly worked out, the press service said. It is planned that a logistics scheme and mechanisms for organizing regular product supplies will be jointly developed. Exact amounts will be determined as the project develops.