Russia’s state-run gas firm Gazprom has signed deals for the £8.1bn Baltic LNG project, an integrated gas processing and liquefaction facility proposed at the Baltic Sea port of Ust-Luga, in Leningrad Oblast.

Last year, Gazprom and RusGazDobycha, a subsidiary of the National Gas Group (NGS) have agreed to build LNG complex with the capacity to process 45 billion cubic metres (bcm) of gas to produce 13 million tonnes (Mt) of LNG, 4Mt of ethane and more than 2.2Mt of liquefied petroleum gases (LPG) a year.

Baltic LNG complex to be commissioned in 2023

Scheduled to enter service in 2023, the Baltic LNG complex will be operated by RusKhimAlyans, a special purpose vehicle established Gazprom and RusGazDobycha.

Gazprom has now signed 20-year commercial contracts with RusKhimAlyans for the supply of 45bcm ethane-containing gas per year.

Additionally, RusKhimAlyans signed a 20-year contract with Baltic Chemical Complex, a wholly-owned subsidiary of RusGazDobycha, to supply ethane fraction for further processing at the gas chemical facility that will be technically affiliated with the integrated complex.

RusKhimAlyans also signed an EPC contract with SIBUR Group unit NIPIGAZ for a full cycle of operations to create gas processing and off-site facilities at the complex.

Under the contract, NIPIGAZ will be responsible for preparing the working documentation, ensure the delivery of equipment & materials; the execution of construction & installation and start-up & commissioning works; and providing integration services for the complex and its off-site facilities.

RusKhimAlyans is due to award ЕРС contracts for the construction of natural gas liquefaction facilities, a storage facility for raw materials and marketable products, a marine shipment terminal, and other non-production facilities.