SHELL EXITS GAZPROM
REUTERS - Royal Dutch Shell has decided to exit a Baltic liquefied natural gas (LNG) project led by Russian state gas major Gazprom on the Russian Baltic coast.
The development comes as Western firms struggle to expand in Russia because of pressure from sanctions imposed by the United States, while for Gazprom it could mean limited access to Shell's technology as well as the need to fund the project without the help of the Anglo-Dutch major.
Shell, which has a long history of energy cooperation with Russia, said earlier it was studying the possible implications of a recent decision by Gazprom to move toward the full integration of its Baltic LNG and gas processing plants.
"Following Gazprom's announcement on March 29 regarding the final development concept of Baltic LNG, we have decided to stop our involvement in this project," Cederic Cremers, Shell Russia's chairman, said in a statement.
"We have a number of other ongoing projects with Gazprom, including as part of the Strategic Alliance established between the two companies in 2015, which are not impacted by this decision," Cremers added.
Gazprom declined to comment.
Shell remains a shareholder in the Gazprom-led Sakhalin-2 plant, which produces LNG on the Russian Pacific island of Sakhalin. Shell has been struggling to increase output of the frozen gas at the project for a number of reasons.
Its decision to leave the Baltic LNG project leaves open a question about the availability of technology needed for this project as Shell will not be providing it.
Shell had developed a technology specifically for the Sakhalin Energy LNG plant, and in February said it had created a 50/50 venture with Gazprom that would use Shell's LNG know-how to develop Russia's own technology for supercooling gas.
The venture was expected to effectively insulate Russia from any new U.S. sanctions on LNG, a sector in which key technology belongs to a handful of players - mainly global majors such as Shell, Exxon and Total.
Russia, one of the world's biggest oil producers, has been under Western sanctions since 2014 due to its role in the Ukraine crisis.
While the production of seaborne LNG is not directly affected by the sanctions, the sales and marketing of it, as well as foreign participation, have become more complicated due to the restrictions.
Shell previously suspended some shale oil and gas projects due to the introduction of sanctions on Moscow.
On March 29, Gazprom said in a statement that together with its partner RusGazDobycha it had made a decision on the final configuration of the project for a large-scale complex that would process ethane-containing gas and produce LNG in the Leningrad region. That statement did not mention Shell.
Shell said on Wednesday that its representations and those of Gazprom had not discussed the Baltic LNG project at their meetings in the Hague on Tuesday and Wednesday. These were their regular annual meetings to discuss progress on projects which are part of the strategic alliance, Shell added.
Log in to read the publication.
An authorized user gets access to four FREE publications per month.
You can also buy a full access to all publications of the site since January 2014.
Производство СПГ по итогам года выросло сразу на 71%. С учетом роста мощностей Россия вышла в топ-3 стран по мощностям производства СПГ. Мы видим огромный потенциал в этой сфере, потребление СПГ будет расти, и наша ниша на этом рынке - до 100 млн т.
No project better symbolizes Russia ambitions in the Arctic than Yamal LNG. The project cost $27 billion to construct, excluding the adjacent infrastructure paid for by the Russian Federation.
TASS - The share of liquefied natural gas (LNG) on the global gas market may double to reach 70% by 2040, Russia’s Energy Minister Alexander Novak said at the Krasnoyarsk Economic Forum on Friday.
Russian gas producers Gazprom and RusGazDobycha will start a major gas processing and liquefaction project near the Baltic Sea port of Ust-Luga, Gazprom said on Friday.
Full-scale development of Kharasaveyskoye field starts in Yamal Peninsula
Russian LNG is well positioned to compete with North American projects to reach new markets in Asia and the Atlantic Basin despite the challenges, a Shell executive said Wednesday at the LNG Congress in Moscow.
The Gazprom Board of Directors expressed its approval the Company’s ongoing work on its major investment projects.
|April, 19, 09:45:00|
|April, 19, 09:40:00|
|April, 19, 09:35:00|
|April, 19, 09:30:00|
|April, 19, 09:25:00|
|April, 19, 09:20:00|
South Korea's economy has been pushing to shed its heavy reliance on coal and nuclear power, with the latest target coming on top of a 2017 plan to increase the amount of renewables in its energy mix to 20 percent by 2030.
The International Monetary Fund (IMF), has forecast the UAE’s nominal Gross Domestic Product (GDP) to grow 4.7 percent to AED1.673 trillion in 2019, compared to AED1.589 trillion a year ago.
the goods and services deficit was $49.4 billion in February, down $1.8 billion from $51.1 billion in January,
BHGE - U.S. Rig Count is down 10 rigs from last week to 1,012, with oil rigs down 8 to 825, gas rigs down 2 to 187, and miscellaneous rigs unchanged at 0. Canada Rig Count unchanged from last week at 66, with oil rigs up 1 to 19 and gas rigs down 1 to 47.