Reuters is reporting that Royal Dutch Shell has opted to leave the Gazprom-led Baltic LNG project.
In a recent statement, Shell’s Russian Chairman, Cederic Cremers announced, “following Gazprom’s announcement on March 29 regarding the final development concept of Baltic LNG, we have decided to stop our involvement in this project.”
“We have a number of other ongoing projects with Gazprom, including as part of the Strategic Alliance established between the two companies in 2015, which are not impacted by this decision,” Cremers added.
This development has come about as Western companies continue to expand in Russia, due to pressure from US sanctions.
Shell’s withdrawal has a number of implications for Gazprom itself. For one, Gazprom’s access to the Shell’s latest technology is likely to be limited. There is also the question of the need to fill the project funding void.
Gazprom has not provided any comments on this latest development.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11042019/shell-exits-baltic-lng/