Gazprom Pens Key Deals for Baltic Gas Complex
Gazprom has signed several key agreements for the Baltic gas processing and LNG production complex it is developing with private partner Rusgazdobycha at the Baltic port of Ust-Luga, it said on June 8.
Gazprom has agreed a 20-year contracts with Ruskhimalyans, its 50:50 partnership with Rusgazdobycha that is managing the venture, on supplying raw gas to the complex and taking its treated gas. Ruskhimalyans also signed a 20-year agreement with Rusgazdobycha on the delivery of ethane produced at the complex to a petrochemical plant that the latter is developing on its own, also in Ust-Luga.
In addition, Ruskhimalyans has issued an engineering, procurement and construction (EPC) contract to Nipigaz, a subsidiary of Russia's Sibur, for the development of the complex's gas processing facilities. It is yet to pick an EPC contractor for the liquefaction facilities.
Gazprom and Rusgazdobycha unveiled the $13bn project last year. Earlier Gazprom had wanted to build a liquefaction-only plant at Ust-Luga with Shell. The Anglo-Dutch major exited the venture when Gazprom incorporated gas processing facilities into the plan and brought on board Rusgazdobycha.
The complex is due to come on stream in 2023 or 2024. At full capacity, it will annually handle 45bn m3 of raw gas and produce 18bn m3 of treated gas, ready for commercial use, and 13mn mt/yr of LNG. The gas will be fed into Gazprom's Nord Stream pipelines for delivery to Europe, while the LNG will be shipped to markets via tankers. The complex will also turn out 3.6mn mt of ethane and 2.2mn mt of liquefied petroleum gas.
Gazprom is working with Rusgazdobycha at several ventures, including Rusgazalyans, which plans to exploit a trio of gas fields in Western Siberia. A final investment decision has just been taken on developing the first of these fields.