Gazprom and Shell discuss development of strategic cooperation
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Ben van Beurden, Chief Executive Officer of Shell, took place today at the 6th St. Petersburg International Gas Forum.
The parties discussed a wide range of issues related to the development of strategic partnership in the energy sector, paying particular attention to the construction project for the third production train of the LNG plant on Sakhalin Island (Sakhalin II project). It was noted that the preparation of design and FEED documentation is nearing completion.
The meeting also touched upon other possible projects under the Agreement of Strategic Cooperation signed by Gazprom and Shell in 2015.
The meeting participants reviewed the progress of the Nord Stream 2 project. Shell reaffirmed its position to facilitate the project.
Shell is a British-Dutch oil and gas company focused on hydrocarbon production, processing and marketing in over 90 countries worldwide.
Russia's only LNG plant is operating under the Sakhalin II project. The Sakhalin II operator is Sakhalin Energy Investment Company Ltd. (Gazprom – 50 per cent plus one share, Shell – 27.5 per cent minus one share, Mitsui – 12.5 per cent, and Mitsubishi – 10 per cent).
In 2015, Gazprom and Shell signed the Memorandum to construct the third production train of the LNG plant, as well as the Agreement of Strategic Cooperation providing for the expansion of the companies' joint project portfolio, including a potential asset swap.
In June 2016, Gazprom and Shell signed the Memorandum of Understanding on the Baltic LNG project. The document reflects the parties' intention to explore the prospects for cooperation within the project.
The Baltic LNG project envisages the construction of the LNG plant with an annual capacity of 10 million tons in the port of Ust-Luga, Leningrad Region.