Russia's Gazprom plans to develop the liquefied natural gas (LNG) facility in the Leningrad region (Baltic LNG) near the seaport of Ust-Luga, Russia.
Expected to have a capacity of 10 million tons of LNG a year, the plant will have a possibility of expansion to 15 million tons.
The facility will be supplied with gas from the Unified Gas Supply System (UGSS) of Russia.
Gazprom management committee chairman Alexey Miller said: "Our Company holds a leading position in the global energy business. The Baltic LNG project will provide Gazprom with additional competitive advantages, enhance its presence in the dynamic LNG market and open up new supply regions for the Company."
Gazprom signed a memorandum of understanding and cooperation with Leningrad region in June 2013 for a LNG plant project.
Under the terms of the MoU, the Leningrad region’s government will ensure that necessary approvals are granted by authorized regulatory bodies and local authorities, relevant permits are issued for Gazprom to construct the LNG plant.
Currently, the company is in investment stage for the Baltic LNG project, which is planned to be commissioned in 2018.