Gazprom, Shell Look at Ust-Luga LNG Project

September 9, 2015

Russia’s Gazprom and Royal Dutch Shell are looking at forming a Baltic LNG joint venture at the port of Ust-Luga. The aim is to make an LNG plant at the Russian port with output of up to 15m tons a year with Shell likely in for a 49% stake.

Gazprom and Shell have worked together in the past on a number of gas projects, most notably Sakhalin in Russia’s Far East.

With the Baltic becoming an emissions control area (ECA) this year there is demand for more LNG as a ship fuel, with ferry operators in the region in particular taking the lead in the world in terms of adopting this fuel switch.

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