The Primorsky Krai Development Corporation has signed an agreement for a joint venture with a Russian subsidiary of China’s state-owned energy company Sinomec as part of the Eastern Economic Forum in the Russian city of Vladivostok.
The first project of the new company will be a 100 MW gas power plant for the Primorye gambling zone with an investment of about 10 billion rubles ($152.6 million).
The agreement stipulates the registration of a Russian-Chinese company named Far Eastern Energy Company LLC, which will develop energy projects in Primorsky Krai.
According to Primorsky Krai Development Corporation executive director Igor Trofimov, “China is our partner, and the decision to develop cooperation is fixed at the government level, so we decided to create a joint company, which will serve as the basis for further work.”
He quoted the Chinese side as saying that it sees development prospects in the energy sector in the Russian Far East. In Primorye, especially in the northern regions, there is a large energy shortage and the company is ready to consider the possibility of investing in these projects on conditions favourable for the Russian side, which will help reduce the tariff in these territories.
According to Trofimov, after the negotiations with the Chinese side, approval was received from the head office of Shanghai-based Sinomec, and in September the joint company will be officially registered.
The first stage of the planned gas power plant with a capacity of 25 MW is planned to be built by 2023.