Gazprom, RusGazDobycha and NIPIGAZ make decision to terminate EPC contract for Ust-Luga Gas Processing Complex

Background

Gazprom and RusGazDobycha are implementing the project for a natural gas processing and liquefaction complex near the settlement of Ust-Luga, with the RusKhimAlyans special-purpose company as the project operator. 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 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.

RusGazDobycha will be responsible for the construction of the technically affiliated gas chemical facility that will process ethane generated by the complex and produce up to 3 million tons of various polyethylene grades.

Under the existing long-term contracts, the CPECG will be provided with raw materials for not less than 20 years.


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