Shell to be part of Gazprom offshore gas field near Sakhalin island
ST PETERSBURG, Russia, June 16 (Reuters) – Energy major Shell and Russia’s gas major Gazprom will jointly invest $13 billion in three projects in Russia, Russian Energy Minister Alexander Novak said on Thursday.
Novak said that Shell would take part in the development of Gazprom’s Yuzhno-Kirinskoye gas field offshore Russia’s Sakhalin island in the Pacific.
The two companies will also jointly invest in the Baltic Sea Liquefied Natural Gas plant in the port of Ust-Luga which has an annual capacity of 10 million tonnes. Gazprom says the LNG plant could produce up to 20 million tonnes of frozen gas per year.
Gazprom and Shell are already partners in Russia’s only LNG plant on the Pacific island of Sakhalin which has a capacity of 10 million tonnes per year. The partners have agreed to jointly invest in an expansion of the Sakhalin-2 LNG plant
(Reporting by Denis Pinchuk and Olesya Ostakhova; writing by Lidia Kelly; editing by Polina Devitt)