Russian LNG, LPG, petchem complex signs gas supply agreement

Gazprom and RusKhimAlyans signed 20-year commercial contracts for supplies of feed gas and sales gas for the planned gas processing, liquefaction, and chemical complex on the Gulf of Finland near Ust-Luga seaport, Leningrad Oblast, Russia. RusKhimAlyans is operator of the planned complex and a joint venture of Gazprom and RusGasDobycha. Planned liquefaction capacity is 13 million tonnes/year (tpy).

Gazprom will supply 45 billion cu m/year (bcmy) of wet natural gas from its Achimov and Valanginian deposits in the Nadym-Pur-Taz region of the Yamal Peninsula to RusKhimAlyans. Gas remaining after processing (including ethane extraction) and LNG production, about 18 bcmy, will go into Russia’s gas transmission system. The complex will produce as much as 4 million tpy of ethane, and more than 2.2 million tpy of LPG.

While LNG and LPG produced at the complex will be exported, ethane from the site will feed nearby RusGazDobycha subsidiary Baltic Chemical Complex LLC’s (BCC) proposed $13-billion ethane cracking project, which—once in operation—will produce more than 3 million tpy of polymers (OGJ Online, Nov. 18, 2019).

RusKhimAlyans also entered into an engineering, procurement, and construction (EPC) contract with Nipigaz (part of the Sibur Group) for the integrated complex’s gas processing. Nipigaz previously completed a set of engineering surveys and developed basic technical solutions for RusKhimAlyans under at contract signed September 2019. Design documentation is now being drafted for the gas processing facilities.

RusKhimAlyans will later select ЕРС contractors for the liquefaction plant, storage of both raw material and finished products, a marine shipment terminal, and other nonproduction infrastructure. An ЕРС management contractor will be chosen to carry out integrated management of the construction across the complex.

RusKhimAlyans also signed a 20-year contract to supply ethane to BCC.