Takumi Kume, JGC: ''We see potential in TANECO and TAIF''

''We would like to expand our business area''

Could you tell us what is the aim of your visit?

We are executing the big LNG project in the Yamal Peninsula, but we would like to expand our business area to the other part of Russia. Yamal is a gas producing area, here, in Tatarstan, they produce oil. Not only here but in some other oil producing areas, this is where we see the potential projects.

In what Tatarstan companies is JGC Corporation interested?

There are two large oil-producing and petrochemical companies – TANECO and TAIF. We see the potential projects with them.

What projects would you like to develop with TAIF and TANECO?

There are no specific projects. It is the first visit for us to this area. We are having a pre-study, what potential projects, perspectives are for both companies. We will have direct meetings, we will voice the intentions of those companies, then we will study and we will decide what we can offer for these companies. Any future project is of our interest, and, perhaps, we will implement projects for TANECO and TAIF.

According to JGC Corporation, the implementation of projects in Tatarstan looks economically attractive. Photo: Roman Khasaev

Did you have an opportunity to visit facilities of TAIF or TANECO?

Not yet, but we have the intention to do it in the future.

How do you assess the petrochemical potential of Tatarstan and Russia?

We see big potential here, the industry is already developed, and there is infrastructure, that is why it is more economical to do new projects in such environment. If it is a new place, we have to invest a lot to prepare infrastructure for the industry. Given the fact that it is already established somehow, there are companies such as TAIF and Tatneft, to implement projects in this area would be more economically attractive.

How oil prices affected the implementation of projects

JGC Corporation operates in different fields — oil and gas production, oil processing, nuclear energy. What field gives revenue the most?

Right now the LNG project is the biggest revenue contributor. The second one is the gas processing project, the third is the refinery project.

You have many large energy projects around the world. Could you tell us about the main ones.

If we talk about LNG sector, there are projects in the USA, Russia, we also see the potential in Africa. Big energy projects were being implemented in Australia, but now it is saturated. But now, because oil price is down, therefore the energy prices are also down, the demand is not what we expected before, that is why the energy projects are in low gear, investment injection is being delayed mostly.

Now it is very severe time for our companies, like EPC-contractor. Photo: Roman Khasaev

How did the oil price drop affect the company's revenues?

Very severely. Investments by big companies such as Tatneft, TANECO, Rosneft, if to speak about Russian companies, and, of course, international companies such as Shell, Exxon, their investments also slow down, as well as Middle Eastern companies, national oil companies. The projects are very limited in these two-three years. The number of companies is not decreased, the opportunities to participate or to be awarded a small number of projects is very limited. Now it is very severe times for our companies, like EPC-contractor.

Have you had a chance to sightsee in Tatarstan?

We just came in last night, but the impression is very good. You know, the road from the airport to the heart of the city is well established. The airport itself is very good. I think it is one of the best in Russia. Particularly impressive is the bridge in the airport, in most of the Russian cities there are no such bridges. This particularly good in severe winter time. We had very little time, we did not have a chance to see many, but what have impressed us is that the streets are green and the weather is good, we are like in the tropics.