Gazprom, Shell settle main issues for Baltic LNG JV

YUZHNO-SAKHALINSK, Sep 25 (PRIME) -- Russian gas giant Gazprom and Royal Dutch Shell have settled all main issues for creation of a joint venture for the implementation of the Baltic LNG liquefied natural gas plant project, Cederic Cremers, country chair for Russia at Shell, said at a conference Tuesday.

The companies are close to signing of an agreement and yet have to solve a couple of issues, he said.

At present, a pre-FEED of the Baltic LNG project is being held and can probably take from six to nine months, after which a final investment decision will be made, he said.

In June 2016, Gazprom and Shell signed a memorandum of understanding on the Baltic LNG project encompassing construction of a LNG plant with an annual capacity of 10 million tonnes in the Leningrad Region port of Ust-Luga. The facility’s capacity can be later increased to 15 million tonnes a year.

In June 2017, Gazprom and Shell signed a document defining main terms of an agreement on the joint venture on the Baltic LNG.

Cremers also said he believed that Russia-produced LNG will face a tough competition in the world, and its producers requite a favorable tax regime and state support.

Shell also plans to double its chain of gas filling stations in Russia to 600 over the next five–six years, Cremers also said.

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