The liquefied natural gas (LNG) market has been persistently growing in the recent years. The demand for LNG necessitates the construction of new LNG production capacities.
Baltic LNG is a natural gas liquefaction plant in the Leningrad Region. The potential target markets for the project include countries in the Atlantic region, Middle East, and South Asia, as well as small-scale LNG markets in the areas of the Baltic and North Seas. The possibility of LNG swap deals is also under consideration.
Figures and facts
The plant will be built near the seaport of Ust-Luga. Its annual capacity will amount to 10 million tons.
In June 2013, Gazprom and the Leningrad Region signed the Memorandum of Understanding and Cooperation with regard to an LNG plant project. In accordance with the Memorandum, the Government of the Leningrad Region will ensure that all required approvals are granted by the authorized regulatory bodies and local authorities, relevant permits are issued, and Gazprom’s ownership rights to the facilities constructed and land purchased are registered.
In June 2016, Gazprom and the British-Dutch oil and gas company Shell inked the Memorandum of Understanding on Baltic LNG. The document reflects the parties’ commitment to explore the prospects for joint efforts within the project.
In June 2017, Gazprom and Shell signed the Heads of 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. The parties also inked the Joint Study Framework Agreement to conduct feasibility studies for the Baltic LNG project.
To deliver the project, it is planned to apply state-of-the art technologies and latest developments (primarily Russian ones) that minimize environmental impacts.