Gazprom aiming to expand liquefied natural gas production for foreign and domestic markets

The Gazprom Management Committee took note of the information about the progress of the projects for the production and supply of liquefied natural gas (LNG).

It was noted that the Company’s work in this promising direction will make it possible to strengthen the position of Gazprom in foreign markets and address in a more flexible manner the tasks related to providing reliable gas supplies to domestic consumers.

Near the settlement of Ust-Luga in the northwestern part of Russia, Gazprom and RusGazDobycha are building the Complex for processing ethane-containing gas. The Complex will include a large-scale liquefied natural gas production plant which, with its capacity of 13 million tons of LNG per year, is designed to become the biggest such plant in northwestern Europe.

At the same time, the project for the construction of the LNG production, storage and shipment complex near the Portovaya CS continues in the Leningrad Region. The complex will produce 1.5 million tons of LNG per year. The possibility of building another mid-scale LNG plant near Vladivostok is being considered.

Gazprom pays special attention to the development of mid-scale LNG complexes, for instance, those designed to bring gas to localities that are situated far away from gas trunklines. The first of these projects was implemented in the Perm Territory: a small-scale LNG plant and three natural gas receiving, storage and regasification stations have been in operation here since 2014. Access to gas has been provided to over 2,200 households and 10 boiler houses in the Ilyinsky, Karagaisky, and Sivinsky Districts. Gazprom is now working to implement similar projects in the Tomsk and Sakhalin Regions.

The Company is actively working to expand the use of LNG in transport, namely in motor, water and railroad transport. For instance, thermally-insulated containers with liquid helium from the Amur Gas Processing Plant are being transported by special-purpose KAMAZ trucks powered by LNG. In addition, agreements on small-scale LNG complexes in the Amur and Volgograd Regions were signed at St. Petersburg International Gas Forum 2021. These agreements will, inter alia, facilitate the expansion of the NGV market.

In August 2021, Gazprom Neft finished the construction of Dmitry Mendeleev, Russia’s first LNG bunkering vessel, which is designed to refuel cargo and passenger ships with liquefied natural gas. Chaika SPG, the country’s first LNG-powered river passenger ship, was built with support from Gazprom in 2020.

The Gazprom Group is also planning to expand the use of LNG in its own railroad transport. For instance, an LNG-powered shunter was developed for Gazpromtrans. The first of such shunters is expected to enter pilot operation before the end of this year.

The issue of the progress of the projects for the production and supply of liquefied natural gas will be submitted for consideration by the Gazprom Board of Directors.