Alexey Miller about new LNG plant

Gazprom and the Leningrad Region signed today a Memorandum of Understanding and Cooperation with regard to a liquefied natural gas (LNG) plant project. I mean the project that we announced recently.

The signed document is strategically significant not only for our Company, but also for the entire Northwestern Russia and for our international partners.

In recent years the LNG market has shown a steady upward trend. The demand for LNG calls for new liquefaction capacities, and Gazprom as a global energy company leading in gas production, transmission and marketing should unquestionably stand on the frontline of cutting-edge trends and promote the expansion of Russian energy sales markets.

Therefore, Gazprom took the decision to launch a fundamentally new and ambitious project – the construction of an LNG plant in the Leningrad Region.

The new LNG plant project is targeted, first of all, at European markets. Besides, we are looking at the possibility of LNG-LNG swap deals. We are also focused on the Latin American countries that show interest in expanding and diversifying LNG supplies.

In addition, we have plans to use the plant products for servicing the bunker market as well as for small-scale supplies to the Baltic Region.

The plant capacity will be 10 million tons per year. Today we started developing an Investment Rationale and selecting a construction site.

We are fully aware that LNG production requires considerable funds and state-of-the-art technologies. Therefore, Gazprom may consider the possibility of engaging other companies in the project.