Alexey Miller, Chairman of the Gazprom Management Committee, and Ben van Beurden, Chief Executive Officer (CEO) of Shell, recently discussed the the progress of and prospects for strategic cooperation in the LNG sector at the St Petersburg International Economic Forum 2016.
Gazrpom said that particular attention was paid to the construction project for the third production train of the LNG plant on Sakhalin Island. Design and front end engineering and design (FEED) documentation are currently being prepared for the new production train. The two parties also discussed the issues related to the ongoing Nord Stream 2 project.
Alexey Miller and Ben van Beurden also signed a Memorandum of Understanding (MoU) on the Baltic LNG project, as a follow-up to the Agreement of Strategic Cooperation. The document reflects the parties' commitment to enhancing collaboration in the LNG sector. The companies will explore the possibilities and prospects for building an LNG plant with a capacity of 10 million tpy in the port of Ust-Luga, Leningrad Region, Russia.
Mr Miller said: “We continue to expand our successful cooperation with Shell. An LNG plant oriented toward Asia-Pacific is efficiently operating on Sakhalin Island in eastern Russia. We are working to enhance its capacity. We will now explore the possibilities for joining our efforts in the promising Baltic LNG project in western Russia. The new project will greatly diversify Gazprom's sales markets and strengthen our LNG portfolio.”
Mr van Beurden added: “Shell and Gazprom are convinced that LNG and natural gas in general have great prospects. Over the past year, we made great efforts to advance our strategic cooperation. Today, Shell's primary focus in Russia is the expansion of the Sakhalin II project and the establishment of a world-class LNG centre in Russia's Far East. At the same time, we continue to consider new avenues for collaboration in the energy sector.”
Edited from press release by Callum O'Reilly
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