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Shell exits Gazprom-led LNG project in Russia

April 10, 2019: 12:58PM

ST PETERSBURG, Russia (Reuters) – Royal Dutch Shell has decided to exit the Baltic liquefied natural gas (LNG) project led by Russian state gas giant Gazprom in the Leningrad region, the chairman of Shell’s Russian unit said on Wednesday.

Shell, which has a long history of energy cooperation with Russia, said earlier on Wednesday it was studying the possible implications of a recent decision by Gazprom to move toward the full integration of its Baltic LNG and gas processing plants.

“Following Gazprom’s announcement on March 29 regarding the final development concept of Baltic LNG, we have decided to stop our involvement in this project,” Cederic Cremers, Shell Russia’s chairman, said.

“We have a number of other ongoing projects with Gazprom, including as part of the Strategic Alliance established between the two companies in 2015, which are not impacted by this decision,” he added.

Shell remains a shareholder in the Gazprom-led Sakhalin-2 plant, which produces LNG on Russian Pacific island of Sakhalin.

Gazprom declined to comment.

On March 29, Gazprom said in a statement that together with its partner RusGazDobycha it had made a decision on the final configuration of the project for a large-scale complex that would process ethane-containing gas and produce LNG in the Leningrad region.

Shell said on Wednesday that its and Gazprom’s representatives had not discussed the Baltic LNG project at their meetings in the Hague on Tuesday and Wednesday. These were their regular annual meetings to discuss progress on projects which are part of the strategic alliance, Shell added.

Reporting by Vladimir Soldatkin; writing by Tom Balmforth and Polina Devitt; editing by Kirsten Donovan


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