Gazprom, Shell discuss LNG, Nord Stream 2

Gazprom said earlier this week its chairman, Alexey Miller, met Shell’s executive committee member, Maarten Wetselaar, to discuss the companies’ strategic cooperation, with a focus on liquefied natural gas (LNG).

The officials gathered in St. Petersburg to discuss the construction of the third train of the LNG plant on Sakhalin Island, as well as the progress of the joint study framework agreement for the Baltic LNG project.

Details of the meeting, however, weren’t disclosed.

Gazprom and Shell are partners in the Sakhalin II project, along with Japanese firms Mitsui and Mitsubishi. The LNG plant, the first and only active in Russia, produced over 10.9 million tons of LNG last year from two trains. Expanding with a third train is under planning.

The project infrastructure includes three offshore platforms, an onshore processing facility, 300 kilometers of offshore pipelines and 1,600 km of onshore pipelines, an oil export terminal and a liquefied natural gas (LNG) plant. According to Shell, Sakhalin II meets 6% of the LNG market in the Asia-Pacific region.

The partners are also setting up a joint venture to build a liquefaction plant in the Leningrad Region able to produce 10 million tons per year (MTPA) of LNG. Gazprom will target markets in the Atlantic region, Middle East and South Asia, as well as smale-scale LNG markets in the Baltic and North Seas. It’s also considering LNG swap deals, Kallanish Energy notes.

Additionally, Shell and Gazprom are also partners in the Nord Stream 2 gas pipeline, connecting Russia to Germany across the Baltic Sea. The 55-bilion-cubic-meter (Bcm) line is under construction and could potentially be impacted by U.S. sanctions against Russia.