Gazprom has signed a gas supply and offtake agreement for the Ust-Luga processing gas plant and LNG export complex planned by the company's RusKhimAlyans joint venture with private-sector firm RusGasDobycha.
It will supply up to 45bn m³/yr of ethane-rich gas to the Ust-Luga processing plant (GPP) on the Baltic Sea from Achim and Valanzhin deposits in west Siberia's Nadym-Pur-Taz region.
Around 20bn m³/yr of processed gas will feed the 13mn t/yr Baltic LNG plant. Gazprom will export the LNG and it will take around 18bn-19bn m³/yr of processed gas into its network, possibly for export along the 55bn m³/yr Nord Stream 1 route, or under-construction 55bn m³/yr Nord Stream 2 pipeline. RusKhimAlyans will sell the GPP's 3.8mn t/yr of ethane and 2.4mn t/yr of LPG production.
RusKhimAlyans is yet to select an engineering contractor to build the Baltic LNG plant and associated export terminal. Gazprom and RusGasDobycha are trying to attract project financing for the project, which they hope will be operating at capacity by the end of 2024.
But the partners have selected a subsidiary of leading Russian LPG and petrochemicals producer Sibur — Nipigaz — to build the 45bn m³/yr Ust-Luga GPP. And RusKhimAlyans has signed 20-year supply deal for the GPP's 3.8mn t/yr of ethane with RusGasDobycha, for its planned Baltic Chemical Complex at Ust-Luga.
Nipigaz is preparing an initial engineering and design study for the complex and RusGasDobycha expects construction permits to be granted this summer. The project will produce 3mn t/yr of polyethylene as well as alpha-olefins.
