The Russian Far East and Arctic Development Corporation (FEDC) with the support of the Ministry for the Development of the Russian Far East and Arctic, held a working meeting with representatives of Xinxing Far East Corporation LLC (a subsidiary of the Chinese Energy Industry Corporation Zhongyu Xinxing). The parties discussed projects, whose implementation is provided for under a cooperation agreement signed on the sidelines of the 6th Eastern Economic Forum in September 2021: the construction of a large-capacity LNG plant in the Primorsky Region, a small-tonnage LNG plant with a capacity of up to 80,000 tons per year in the Khabarovsk Region, and a logistics complex for transshipment of LPG in the Jewish Autonomous Region.
General Director of the Xinxing Far East Corporation Li Shaoshi spoke about the pace of preparations for the construction of a large-capacity plant to produce liquefied natural gas in the area of the Bay of Five Hunters, Shkotovsky District, Primorsky Region. An enterprise with a capacity of 7 million tons annually, as well as a seaport (Valentina gas terminal) for transshipment of the indicated volumes of LNG and 1 million tons of liquefied petroleum gas per year, is planned to be commissioned in 2027. The volume of investments in the project may amount to 490 billion rubles.
Geological, geodetic, and archaeological surveys were carried out under the project. Technical conditions have been received fr om resource-supplying organizations for connection to power grids and water supply for the construction period. A feasibility study and project documentation are being developed. The creation of a sea terminal also involves the establishment of a customs control zone. A railway line will be laid for delivery to the port and further transshipment of LPG. The Xinxing Far East Corporation is currently selecting a general contractor.
“According to the requirements of China’s state programs to ensure carbon neutrality, the volume of imports and consumption of LNG in the foreseeable future will grow steadily. This speaks to the great prospects for the project. We expect to occupy about 10% of China’s total LNG imports after the commissioning of all facilities. The management of our corporation is ready to contribute to the socio-economic development of the Far East,” said Xinxing Far East Corporation LLC General Director Li Shaoshi, thanking the FEDC for the constant support of the company’s investment initiatives.
With the assistance of the FEDC, the investor intends to apply for resident status in the Free Port of Vladivostok.
During the meeting, the parties also discussed the possibility of using Russian equipment and technologies to implement projects in addition to previously planned foreign variants. Additionally, the question about the participation of the Xinxing Far East Corporation in the creation of a Russian-Chinese platform for barter trade and the inclusion of a company representative in the Russian-Chinese Business Council was raised.
“Chinese investment has always been welcome in the Far East and is gaining additional relevance today. Remaining a reliable partner, we are pleased to continue cooperation in the context of the development of trade, economic, and investment cooperation between our countries. Key areas such as energy and industry, especially where the localization of production facilities for oil and gas services is expected, is one of the priority areas for the macro-region. The corporation together with the investor, will work out the details, taking into account the needs and potential of the territories wh ere the projects will be implemented,” said Deputy General Director of the Russian Far East and Arctic Development Corporation Darya Kiryanova.
General Director of the Xinxing Far East Corporation Li Shaoshi spoke about the pace of preparations for the construction of a large-capacity plant to produce liquefied natural gas in the area of the Bay of Five Hunters, Shkotovsky District, Primorsky Region. An enterprise with a capacity of 7 million tons annually, as well as a seaport (Valentina gas terminal) for transshipment of the indicated volumes of LNG and 1 million tons of liquefied petroleum gas per year, is planned to be commissioned in 2027. The volume of investments in the project may amount to 490 billion rubles.
Geological, geodetic, and archaeological surveys were carried out under the project. Technical conditions have been received fr om resource-supplying organizations for connection to power grids and water supply for the construction period. A feasibility study and project documentation are being developed. The creation of a sea terminal also involves the establishment of a customs control zone. A railway line will be laid for delivery to the port and further transshipment of LPG. The Xinxing Far East Corporation is currently selecting a general contractor.
“According to the requirements of China’s state programs to ensure carbon neutrality, the volume of imports and consumption of LNG in the foreseeable future will grow steadily. This speaks to the great prospects for the project. We expect to occupy about 10% of China’s total LNG imports after the commissioning of all facilities. The management of our corporation is ready to contribute to the socio-economic development of the Far East,” said Xinxing Far East Corporation LLC General Director Li Shaoshi, thanking the FEDC for the constant support of the company’s investment initiatives.
With the assistance of the FEDC, the investor intends to apply for resident status in the Free Port of Vladivostok.
During the meeting, the parties also discussed the possibility of using Russian equipment and technologies to implement projects in addition to previously planned foreign variants. Additionally, the question about the participation of the Xinxing Far East Corporation in the creation of a Russian-Chinese platform for barter trade and the inclusion of a company representative in the Russian-Chinese Business Council was raised.
“Chinese investment has always been welcome in the Far East and is gaining additional relevance today. Remaining a reliable partner, we are pleased to continue cooperation in the context of the development of trade, economic, and investment cooperation between our countries. Key areas such as energy and industry, especially where the localization of production facilities for oil and gas services is expected, is one of the priority areas for the macro-region. The corporation together with the investor, will work out the details, taking into account the needs and potential of the territories wh ere the projects will be implemented,” said Deputy General Director of the Russian Far East and Arctic Development Corporation Darya Kiryanova.
