• Basic design solutions are agreed upon, and design documentation is being drawn up.
  • Engineering surveys are completed at construction site; site clearing is in progress.
  • Project financing is being arranged.

The Gazprom Management Committee took note of the information about the status of the project for the creation of an integrated complex for natural gas processing and liquefaction in the Leningrad Region (the Gas Processing Complex as part of the Complex for processing ethane-containing gas near Ust-Luga). It is the anchor project of the major gas processing and chemical cluster that is being established in the region.

The complex will have the largest capacity in Russia in terms of gas processing (45 billion cubic meters per year) and will be the largest in northwestern Europe in terms of liquefied natural gas (LNG) production (13 million tons per year). In addition to LNG, its commercial products will include ethane fraction, liquefied petroleum gases, and pentane-hexane fraction.

By now, the basic design solutions for the project, as well as the specifications for feedstock and commercial products, have been agreed upon. The project operator has been issued the technical specifications for connecting the complex to Gazprom’s gas transmission system, and the drafting of the design documentation has begun. Engineering surveys have been fully completed at the construction site, which is currently being cleared and prepared for construction works.

Meanwhile, efforts are underway to attract project financing from Russian and international credit institutions.

In 2020, it is planned to, inter alia, submit the design documentation for a state expert review, place orders for long-lead equipment, and select an EPC contractor for gas processing units and off-site facilities, as well as an EPCM contractor for project management.

Background

In March 2019, Gazprom and RusGazDobycha made a decision on the final configuration of the project for a gas processing and liquefaction complex near the settlement of Ust-Luga, with RusKhimAlyans as the project operator. The complex will be processing ethane-containing gas, which will be supplied via allocated gas pipelines from Gazprom’s deposits in the Nadym-Pur-Taz region. A gas chemical facility technologically interconnected with the complex will be constructed by RusGazDobycha.

The gas remaining after the processing will go into Gazprom’s gas transmission system. The ethane produced by the complex will be processed by the abovementioned gas chemical facility with an output of up to 3 million tons of various polyethylene grades. The commissioning of the facilities will be synchronized: the first trains will come onstream in the fourth quarter of 2023, and the second trains – in the fourth quarter of 2024.

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