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Gazprom expanding production and use of LNG

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LNG Industry,

The Gazprom Board of Directors has expressed its approval of the Company's ongoing projects for the production and supply of LNG. It was noted that the Company's work in this promising direction will make it possible to strengthen the position of Gazprom in foreign markets and address in a more flexible manner the tasks related to providing reliable gas supplies to domestic consumers.

Near the settlement of Ust-Luga in the northwestern part of Russia, Gazprom and RusGazDobycha are building the Complex for processing ethane-containing gas. The Complex will include a large scale LNG production plant which, with its capacity of 13 million tpy LNG, is designed to become the biggest such plant in northwestern Europe.

The project for the construction of the LNG production, storage, and shipment complex near the Portovaya CS in the Leningrad Region is in its final stage. The complex will produce 1.5 million tpy LNG. The possibility of building another mid scale LNG plant near Vladivostok is being considered.

Gazprom pays special attention to the development of small scale LNG complexes, for instance, those designed to bring gas to localities that are situated far away from gas trunklines. The first of these projects was implemented in the Perm Territory: a small-scale LNG plant and three natural gas receiving, storage, and regasification stations have been in operation here since 2014. Access to gas has been provided to over 2200 households and 10 boiler houses in the Ilyinsky, Karagaisky, and Sivinsky Districts. Gazprom is now working to implement similar projects in the Tomsk and Sakhalin Regions.

The Company is actively working to expand the use of LNG in transport, namely in motor, water, and railroad transport. For instance, thermally-insulated containers with liquid helium from the Amur Gas Processing Plant are being transported by special-purpose KAMAZ trucks powered by LNG. In addition, agreements on small scale LNG complexes in the Amur and Volgograd Regions were signed at St. Petersburg International Gas Forum 2021. These agreements will, inter alia, facilitate the expansion of the NGV market.

In August 2021, Gazprom Neft finished the construction of Dmitry Mendeleev, Russia's first LNG bunkering vessel, which is designed to refuel cargo and passenger ships with LNG. Chaika SPG, the country's first LNG-powered river passenger ship, was built with support from Gazprom in 2020.

The Gazprom Group is also planning to expand the use of LNG in its own railroad transport. For instance, an LNG-powered shunter was developed for Gazpromtrans. The first of such shunters is expected to enter pilot operation before the end of this year.

The Management Committee was tasked with continuing the implementation of the projects for the production and supply of LNG.

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