Public Joint Stock Gazprom: Signature of contractual documents for the implementation of the gas processing complex project near Ust-Luga


A number of contractual documents relating to the implementation of the gas processing complex near Ust-Luga construction project (CPECG’s GPC, is part of the gas processing complex containing ethane (CPECG)) were signed today at St. Petersburg International Gas Forum 2021.

A license agreement was signed, guaranteeing the provision of the rights to use the natural gas liquefaction technology by Gazprom and Linde to the GPC operator of CPECG – RusKhimAlyans (a joint venture of Gazprom and RusGazDobycha). The technology is patented in Russia, with Gazprom and Linde as patent holders.

Gazprom, Linde and RusKhimAlyans have signed a memorandum of understanding. The parties are considering evaluating the possibility of constructing an additional production train – the third – at the LNG production plant under the CPECG GPC.

RusKhimAlyans and Velestroy signed a contract for the construction of a temporary work camp designed to accommodate 5,000 construction workers near Ust-Luga.

The camp is intended for workers, engineers and technicians engaged in the construction of a storage facility for raw materials & salable products and a maritime shipping terminal who are part of the GPC of the CPECG.

The camp will have housing, canteens, medical posts, recreation areas, infrastructure and public services. A wide range of measures are planned to be implemented to combat the spread of COVID-19 in the camp. These measures, for example, include the construction of a shelter to serve as an observation area to quarantine newly arrived workers. The camp will have its own fire station to provide fire safety, as well as a security post with a police station to maintain public order.

Velestroy will be responsible for the development of design and working documentation, the supply of materials and equipment, as well as construction and installation work and start-up and commissioning activities. The transition camp is expected to be completed by the end of 2022.

Background

CPECG’s GPC will have the largest capacity in Russia and one of the largest in the world in terms of gas processing (45 billion cubic meters per year), and will be the leader in northwestern Europe in terms of liquefied natural gas production (13 million tonnes per year). About 18 billion cubic meters of processed gas will be transported to Gazprom’s gas transmission network. Among GPC’s most important salable products will be ethane, a valuable raw material for the gas chemical industry.

The CPECG also includes the gas chemical complex technically affiliated with the GPC (the GCC of the CPECG; the project operator is Baltic Chemical Complex, a subsidiary of RusGazDobycha). The GCC will process the ethane fraction and produce up to 3 million tonnes of polymers per year – the largest output from a single facility in the world.

Construction of the CPECG started in May 2021. Under the existing EPC contracts, the Linde and Renaissance Heavy Industries consortium will design, develop and supply equipment and carry out the construction work of the GPC of the CPECG facilities (processing gas and off-site GPC facilities, as well as two LNG production trains).

Information Department, Gazprom

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