Russian natural gas company Gazprom and the German engineering and industrial gases company Linde have signed accords on the LNG and processing project at Ust-Luga west of St. Petersburg and on the Amur Gas Processing Plant in the Russian Far East.
The signings came at a meeting in St. Petersburg between Alexey Miller, Chairman of the Gazprom Management Committee and Wolfgang Reitzle, Board Chairman at Linde, as well as other executives from both companies.
The meeting covered several issues, including the project for the creation of the Gas Processing Complex in Ust-Luga.
Kirill Seleznev, Director General of RusKhimAlyans, and Juergen Nowicki, Chief Executive of Linde Engineering, signed an agreement of intent in the presence of Miller and Reitzle.
The document outlines the main terms and conditions of a prospective Engineering, Procurement and Site Services (EPSS) contract for Linde.
Gazprom and RusGazDobycha, a special purposes company securing gas supplies for Russia’s chemicals industry, are expecting the various facilities at Ust-Luga to require the processing of 45 billion cubic metres of natural gas per annum.
RusKhimAlyans, a 50-50 joint venture between Gazprom and RusGazDobycha, have already signed 20-year commercial contracts for supplies of feed gas and sales gas as well as ethane fraction for chemicals.
Gazprom and RusGazDobycha are implementing the venture and RusKhimAlyans will be the operator. It is the anchor project of the major gas processing and chemical cluster that is being established in the region.
“The complex will have the largest capacity in Russia in terms of gas processing and will be the largest in northwest Europe in terms of LNG production at 13 million tonnes per annum,” said Gazprom.
“In addition to LNG, its commercial products will include ethane fraction, liquefied petroleum gases and pentane-hexane fraction,” it added.
The parties also reviewed current issues of cooperation, including Gazprom’s Amur Gas Processing Plant (GPP) construction.
“Linde’s equipment for cryogenic gas separation and for helium production is employed at the enterprise,” said Gazprom.
“The GPP’s first two production Trains are being prepared for commissioning at the moment,” the Russian company added.