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Contractual documents signed to implement project for Gas Processing Complex near Ust-Luga

A number of contractual documents relating to the implementation of the construction project for the Gas Processing Complex near Ust-Luga (GPC of CPECG, forms part of the Complex for processing ethane-containing gas (CPECG)) were signed today at St. Petersburg International Gas Forum 2021.

A license agreement was signed, ensuring the provision of rights for the use of the natural gas liquefaction technology by Gazprom and Linde to the operator of the GPC of CPECG – RusKhimAlyans (joint venture of Gazprom and RusGazDobycha). The technology is patented in Russia, with Gazprom and Linde as the patent holders.

Gazprom, Linde, and RusKhimAlyans signed a Memorandum of Intent. The parties plan to assess the possibility of building an additional – the third one – production train at the LNG production plant as part of the GPC of CPECG.

RusKhimAlyans and Velesstroy signed a contract to build a temporary shift camp designed to accommodate 5,000 construction workers near Ust-Luga.

The camp is intended for the workers, engineers and technicians engaged in the construction of a storage facility for raw materials & marketable products and a marine shipment terminal that form part of the GPC of CPECG.

The camp will have housing facilities, canteens, medical stations, leisure areas, infrastructure facilities, and utilities. It is planned to implement a wide range of measures to combat the spread of COVID-19 in the camp. Such measures, for instance, include building a housing facility serving as an observation area to quarantine newly-arrived workers. The camp will have its own fire station to ensure fire safety, as well as a security post with a police station to maintain public order.

Velesstroy will be responsible for the development of design and working documentation, supply of materials & equipment, as well as construction & installation works and start-up & commissioning activities. The shift camp is due to be completed by late 2022.

Background

The GPC of CPECG will have the largest capacity in Russia and one of the largest in the world in terms of gas processing (45 billion cubic meters per year), and will be the leader in northwestern Europe in terms of liquefied natural gas production (13 million tons per year). Approximately 18 billion cubic meters of processed gas will be going into Gazprom's gas transmission system. Among the GPC's most important marketable products will be ethane, a valuable raw material for the gas chemical industry.

The CPECG also includes the gas chemical complex technically affiliated with the GPC (the GCC of CPECG; the project operator is Baltic Chemical Complex, a subsidiary of RusGazDobycha). The GCC will process ethane fraction and produce up to 3 million tons of polymers per year – the largest output by a single facility worldwide.

The construction of the CPECG started in May 2021. Under the existing EPC contracts, the consortium of Linde and Renaissance Heavy Industries shall provide for the design development and equipment supplies and perform construction works for the GPC of CPECG facilities (gas processing and off-site facilities at the GPC, as well as two LNG production trains).

 

Information Directorate, Gazprom

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