Gazprom, Shell ink Baltic LNG deals

Russian gas company Gazprom and the Hague-based LNG giant Shell signed on Saturday two agreements on the planned Baltic liquefied natural gas export project.

The two companies signed an agreement to set up a joint venture. The document describes the concept behind the joint venture, which will secure financing for and carry out the design, construction and operation of the LNG plant in the Leningrad Region, Gazprom said in a statement.

Based on that concept, Gazprom and Shell will take further steps in the implementation of the Baltic LNG project.

The duo also signed a joint study framework agreement on the LNG project.

This document will allow the companies to start developing preliminary project documentation as soon as possible, according to Gazprom.

To remind, Shell and Gazprom signed a memorandum of understanding in June last year where they agreed to study the possibilities for the construction of the Baltic LNG export plant.

The Baltic LNG project includes the construction of the LNG plant with an annual capacity of 10 million tons in the port of Ust-Luga.