Gazprom and Shell ink MoU on Baltic LNG

Russia’s Gazprom and Hague-based LNG giant Shell signed on Thursday a memorandum of understanding regarding the Baltic LNG project.

Under the MoU, the two companies will expand their cooperation in the LNG business and study the possibilities for the construction of an LNG export plant in the port of Ust-Luga in the Luga Bay of the Gulf of Finland.

The liquefaction and export plant will have a capacity of 10 million mt of LNG a year.

The memorandum was signed by Shell’s CEO Ben van Beurden and head of Gazprom Alexey Miller in Saint Petersburg.

Earlier this week, Gazprom Deputy CEO Alexander Medvedev said that the LNG plant could produce up to 20 million mt of LNG per year with first production scheduled for 2021.

Gazprom and Shell are already cooperating on Russia’s sole LNG export plant on Sakhalin island, built within the Sakhalin II project, which currently has an annual production capacity of 9.6 million mt. The agreement to add a third liquefaction train to the LNG plant at Prigorodnoye was signed in June last year.

Shell and Gazprom are convinced that LNG and natural gas in general have great prospects. Over the past year, we made great efforts to advance our strategic cooperation. Today, Shell’s primary focus in Russia is the expansion of the Sakhalin II project and the establishment of a world-class LNG center in Russia’s Far East. At the same time, we continue to consider new avenues for collaboration in the energy sector,” said Ben van Beurden.

 

LNG World News Staff

 

 

 

Share this article

Follow LNG World News

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

The 6th CWC China LNG & Gas International Exhibition & Summit

Following on from LNG 2019 and five successful editions in Beijing, the established China LNG & Gas International Exhibition & Summit…

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

American LNG Forum 2020

The American LNG Forum is your gateway to learning about the US LNG export industry,

read more >

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >