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YATEC to enter the pre-investment phase of methanol complex

CIS GAS MONETISATION

YATEC to enter the pre-investment phase of methanol complex

YATEC maintains plans for the implementation of a methanol production project in Yakutia based on its own raw materials. In the second half of 2019, the company may enter the FEED preparation phase.

As the executive director of the company YAGPK (a subsidiary of YATEC) Oleg Rozhentsev, reported, the work on the project continues, in the second half of the year the pre-investment stage will begin.

Rozhentsev stressed that the design capacity of the future complex remained the same – 5 thousand tons of commercial methanol per day. Shipments will begin no earlier than 2023.

In October 2017 YATEC decided on the licensor for the methanol complex project – the Haldor Topsoe company (Denmark). Under the terms of the agreement, Haldor Topsoe will provide a license for the production of methanol from natural gas for a plant with a capacity of 5 thousand tons per day or 1.75 million tons per year (first stage), perform basic design, and also provide the supply of catalysts and parts of its own technological equipment development.

At that time, investment in the project was estimated at $1.4 billion. In 2019, the company was about to enter the construction site. Deliveries of the first batches of products were scheduled for 2022.

However, the company subsequently faced financial difficulties. After the arrest of the Magomedov brothers, the accounts of YATEC, like most of Summa’s other assets, were seized. In April 2019, it became known that the Arbitration Court of Yakutia satisfied the requirements of Yakutsk Fuel and Energy Company (YATEC) for recovery of 5.316 billion roubles from its main shareholder, Investor LLC (owned by Summa GC Ziyavudin Magomedov)

YATEC supplies gas to the central region of the Republic of Sakha (Yakutia). The company’s share in natural gas production in the republic is about 86%, while the company provides for 100% the needs of all of Yakutsk. The company’s natural gas reserves in the C1 and C2 categories are estimated at 203 billion cubic meters, oil and gas condensate – at 14 million tons.

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