Gazprom Said to Face Delay Starting LNG Plant in Vladivostok

OAO Gazprom (GAZP), Russia’s gas exporter, faces at least a year’s delay in starting shipments from its liquefied natural gas plant in Vladivostok, according to three people with knowledge of the matter.

The LNG facility, which the state-run company has said will begin output in 2018, may start in 2019 or 2020, said the people, asking not to be identified because the information is confidential.

The company hasn’t changed its plan to begin production at Vladivostok in 2018, a Gazprom spokesman said by phone from Moscow, asking not to be identified due to internal policy.

The plant may not get gas on time to support its 10 million metric ton-a-year liquefaction capacity, the people said. The project, in Russia’s Far East, is a day away by ship from Japan. A group of Japanese companies led by Itochu Corp. agreed with Gazprom in 2011 to study the feasibility of the project.

To contact the reporters on this story: Yuriy Humber in Tokyo at yhumber@bloomberg.net; Tsuyoshi Inajima in Tokyo at tinajima@bloomberg.net; Elena Mazneva in Moscow at emazneva@bloomberg.net

To contact the editors responsible for this story: Pratish Narayanan at pnarayanan9@bloomberg.net; Jason Rogers at jrogers73@bloomberg.net

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