LNG

Gazprom’s Baltic LNG looking a tough sell

The lack of potential markets for Gazprom’s 10 mtpa facility suggests the major may be interested more in building its relationship with Shell and pleasing the Kremlin than seriously pursuing the project The lack of potential markets for Gazprom’s 10 mtpa facility suggests the major may be interested more in building its relationship with Shell and pleasing the Kremlin than seriously pursuing the project.
By Silvia Favasuli 8 October 2018 0 32817
The Ust-Luga seaport in Russia. The Russian seaport of Ust-Luga, near the site for Baltic LNG. (Gazprom)

Gazprom and Shell have been drip-feeding information to suggest their Baltic LNG project is going ahead, but the rationale behind the facility is hard to fathom.

Gazprom said last week that a feasibility study on the 10 mtpa project had been completed and that it had signed a framework agreement on the joint design concept with Shell. The Russian gas giant also announced in early September that it had signed a memorandum of understanding on Baltic LNG with Japan’s Mitsui – its partner in the Sakhalin...