Gazprom, Gazprombank to Collaborate on Baltic and Vladivostok LNG Projects

Alexey Miller of Gazprom and Andrey Akimov, Chairman of the Gazprombank Management Board signed on Wednesday an agreement to cooperate within the Baltic LNG and Vladivostok LNG projects.

Gazprom will be the majority shareholder in the project companies set up to implement the Baltic LNG and Vladivostok LNG projects. Gazprombank will have an opportunity to acquire a stake in the project companies.

The project companies, among other things, will own LNG plants along with other necessary production facilities as well as manage the projects at all stages, including the development of project documents.

According to the document, Gazprombank jointly with Gazprom will hold negotiations with international and Russian financial institutions to obtain equity and external financing for the project companies.

Gazprom will support the project companies, inter alia by selecting appropriate sites for LNG plants, obtaining land lease/acquisition rights required for the construction and providing the LNG projects with necessary volumes of natural gas.