Russia to Benefit from LNG Project With Canada
The St. Petersburg Times reports that the LNG plant planned for Leningrad Oblast will earn more than $40 million annually and provide thousands of jobs in Russia. The plant is expected to produce five million tons of LNG annually, which is earmarked for delivery to Petro-Canada’s proposed Gros-Cocouna regasification terminal in Canada. Considering the benefit of an LNG facility as opposed to a gas pipeline, Vitaly Yermakov of Cambridge Energy Research Associates says Gazprom is seeking to take advantage of the market niche for LNG supply. According to Yermakov, costs related to delivering natural gas via pipeline, as Gaprom has traditionally done, are comparable with costs associated with LNG. However, Yermakov noted that LNG has the added benefit of being able to “be transported anywhere without being tied to existing routes.”