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    Gazprom Hails Progress at Baltic Gas Complex


The goal is to order long-lead items and select an EPC contractor this year.

by: Joseph Murphy

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Gazprom Hails Progress at Baltic Gas Complex

Russia's Gazprom provided an update on May 14 on progress at its project to erect an integrated gas processing and LNG production complex at the Baltic port of Ust-Luga.

Basic design solutions and specifications for feedstock and commercial products have been agreed upon by Gazprom and its private partner in the venture, Rusgazdobycha. Gazprom has also received technical specifications for connecting the complex to its transmission system.

The drafting of design documentation has begun and engineering surveys have been completed at the construction site, which is being cleared and prepared for ground work. Efforts continue to attract financing from Russian and international credit institutions.

Gazprom aims this year to submit design documentation for a state expert review, place orders for long-lead equipment and select an engineering, procurement and construction contractor for gas processing units and off-site facility, and another contractor for project management.

Gazprom and Rusgazdobycha took a decision in March 2019 on the project, which will process up to 45bn m3/yr of gas and produce 13mn mt/yr of LNG. It will also turn out ethane fraction, liquid petroleum gases and pentane-hexane fraction. The ethane will be used as feedstock at a nearby petrochemical plant Rusgazdobycha plans to develop.

Gazprom was previously working with Shell on building an LNG plant at Ust-Luga, but the Anglo-Dutch major quit the venture after Gazprom expanded its scope to include processing capacities and announced a partnership with Rosgazdobycha instead. 

The Russian firm is seeking state support for the project, slated to cost at least rubles 700bn ($11bn). State-owned development bank VEB.RF has been lined up as a potential investor.