Gazprom, Shell Mull LNG Projects

Hosting a Working Meeting yesterday at St. Petersburg, Alexey Miller, Chairman of the Gazprom Management Committee discussed with Harry Brekelmans, Maarten Wetselaar, Ronan Cassidy and Members of the Executive Committee of Shell a variety of issues relating to the strategic cooperation between Gazprom and Shell.

 Touching upon the Sakhalin II project, the parties highly appreciated the progress with its implementation. It was noted that in 2015 liquefied natural gas production within the project had totaled 10.8 million tons, exceeding the design capacity of the LNG plant by 1.2 million tons.

The meeting also discussed the LNG plant expansion related activities. At present, the FEED of its third train is ongoing. It was highlighted that the experience gained during the implementation of the Sakhalin II project, one of the most successful LNG projects worldwide, would be fully taken into account in future joint projects of Gazprom and Shell.

Particular attention was given to the Nord Stream 2 project. The parties noted that in light of the declining European gas production, the construction of this gas pipeline was crucial for meeting the growing Russian gas demand in Europe in the future.

The parties also discussed issues concerning a swap of assets.