Shell calls it quits at Baltic LNG project
The Hague-based LNG giant Shell has decided to drop out of the Gazprom-led Baltic liquefied natural gas project in the Leningrad region.
At the end of March Gazprom decided to integrate the Baltic LNG project with its gas processing plants in the Ust-Luga complex.
Speaking to Reuters, Cederic Cremers, chairman of Shell’s Russian unit said that following Gazprom’s decision on the final development concept for the Baltic LNG project Shell decided to step away from the project.
He added that additional projects Shell is developing with Gazprom have not been impacted by this decision. Shell remains a shareholder in Gazprom-led Sakhalin 2 LNG project, Russia’s first liquefied natural gas export facility.
To remind, Gazprom and RusGazDobycha have devised a plan that envisages the construction of capacities for the processing of 45 billion cubic meters of gas and for the production and shipping of 13 million tons of LNG, up to 4 million tons of ethane and over 2.2 million tons of liquefied petroleum gases (LPG) per year.
The complex will be processing ethane-containing gas produced by Gazprom from the Achimov and Valanginian deposits of the Nadym-Pur-Taz region, Gazprom said
The gas remaining after the processing (about 20 billion cubic meters) will go into the company’s gas transmission system.
It is expected to put the first train of the complex into operation in the second half of 2023 and the second train in late 2024.
LNG World News Staff