Shell Confirms Baltic LNG Feed

Shell confirmed October 9 that it has entered the front-end engineering and design stage (Feed) of the Baltic LNG project.

It pointed to an announcement by Gazprom on October 4, in which it said that Gazprom deputy CEO Vitaly Markelov (right, seated below) and Shell integrated gas chief Maarten Wetselaar (left, seated) signed a joint study framework agreement, in relation to the Baltic LNG Pre-Feed, on the margins of 8th St Petersburg international gas forum. Gazprom said the signing took place in the presence of its CEO Alexey Miller (standing in the photo below).

"The document provides for the start of the next phase of the project, which will prepare the transit to Feed work. At the signing the parties noted that the feasibility study was carried out successfully," said Gazprom October 4. When the two agreed to the Baltic LNG pre-Feed in 2017, Gazprom described it as a 10mn mt/yr project envisaged in the port of Ust-Luga, Leningrad Region.

Shell declined to answer NGW's question whether there had been any progress towards an investment decision in Sakhalin train 3, also involving both companies, but none has been reported. In June 2017 Shell said Feed for Sakhalin train three was “nearly completed” but that no financial commitment had at that point been given.

(Photo credit: Gazprom)