On the sidelines of the 8th St. Petersburg International Gas Forum, Russian oil giant Gazprom and British oil major Shell signed a Framework Agreement on the joint design concept (pre-FEED) for the Baltic LNG project.
Namely, Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, and Maarten Wetselaar, Member of the Executive Committee of Royal Dutch Shell, signed the document on 4 October.
The document outlines the next stage of the Baltic LNG project in the lead-up to the FEED stage. During the signing process, the parties noted that the joint feasibility study had been successfully completed.
The signing ceremony took place in the presence of Alexey Miller, Chairman of the Gazprom Management Committee.
In 2017, Gazprom and Shell inked the Heads of Agreement to set up a joint venture for the purposes of implementing the Baltic LNG project and signed the Joint Study Framework Agreement to that effect.
The Baltic LNG project envisages the construction of an LNG plant in the port of Ust-Luga, Leningrad Region. Its annual capacity will amount to 10 million tons.
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.
