Gazprom, Linde ink Ust-Luga deal

Russian gas giant Gazprom and German industrial gas firm Linde have signed a deal to join forces on the large LNG export and chemical project in the Baltic port of Ust-Luga.

The agreement of intent outlines the “main terms and conditions of a prospective EPSS contract providing for engineering services, equipment supplies, and maintenance of gas processing and off-site facilities,” Gazprom said in a statement.

The move follows a recent announcement by Gazprom and partner RusGazDobycha to terminate the Ust-Luga EPC contract with Sibur Group’s Nipigaz.

To remind, Gazprom and RusGazDobycha agreed to build the gas processing and liquefaction complex worth more than 700 billion rubles ($9.22 billion) in March last year.

After that, RusKhimAlyans, the project operator of the complex established on a parity basis by Gazprom and RusGazDobycha, entered into the EPC contract with Sibur Group’s Nipigaz.

The contract, among others, included the construction of gas processing and off-site facilities at the complex.

Following the termination, Gazprom said it would appoint a new contractor for these works in the “near future.”

Linde is one of the world’s largest companies focused on industrial technologies for natural gas treatment and separation with the recovery of ethane, propane and heavier hydrocarbon fractions.

In addition, the company designs and builds cryogenic facilities for natural gas and helium liquefaction.

The Ust-Luga complex includes an LNG plant with 13 million tonnes per year capacity but also ethane fraction and LPG production facilities.

Gazprom will supply feed gas to the integrated project from its Achimov and Valanginian deposits in West Siberia.

- Advertisements -

Most Popular

QatarEnergy picks shipowners for 18 giant LNG carriers

LNG giant QatarEnergy has selected shipowners to own and operate 18 Q-Max LNG carriers as part of its massive...

VTTI, IKAV to take majority stake in Italy’s Adriatic LNG terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, joined forces with German asset manager IKAV to...

Seapeak says working on charter and other opportunities for six LNG carriers

Stonepeak's Seapeak is pursuing various opportunities relating to six of its liquefied natural gas (LNG) carriers which are scheduled...

More News Like This

Russia’s Gazprom to buy Shell’s stake in Sakhalin LNG terminal operator

Russia has approved the sale of a 27.5 percent stake, previously owned by LNG giant Shell, in the new...

India’s GAIL seeks $1.81 billion from SEFE in LNG supply dispute

India’s largest gas utility GAIL has launched an arbitration process in the hope of securing up to $1.81 billion...

Russia’s Gazprom launches small-scale liquefaction plant

Russian gas giant Gazprom has recently launched a small-scale liquefaction plant in the Amur region of Russia's Far East. The...

Russia’s Gazprom delivers its first LNG cargo to China via NSR

Russian gas giant Gazprom said it had delivered its first cargo of liquefied natural gas (LNG) to China via...