A South Korean company has won a contract for a mega-scale gas and chemical plant in Russia, defeating European competitors for the building of the biggest complex of its kind with capacity to turn 45 billion cubic metres of natural gas into LNG and chemical products.

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Gazprom said it was proceeding with the Ust-Luga LNG production plant on the Baltic Coast and was seeking finance for the facility located near Saint Petersburg and which would be the largest in northwest Europe.

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Royal Dutch Shell formally told Russian natural gas company Gazprom recently that it would not be taking part in the proposed Baltic LNG export project planned for near the port of Ust-Luga because of changes in the format.

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Gazprom said it finalized the configuration of its planned new Russian liquefaction and export plant proposed for the port of Ust-Luga on the Baltic Coast and has increased the volume of production.

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Royal Dutch Shell has signed a further agreement with Russian natural gas company Gazprom to make progress on plans to build a liquefied natural gas export plant on the northwest Russian coast to supply global markets.

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