Gazprom and RusKhimAlyans inked a deal on supplies of feed gas and sales gas for twenty years. The gas will be supplied to the proposed gas processing, liquefaction, and chemical complex near Ust-Luga port in Leningrad, Russia. RusKhimAlyans is a joint venture between Gazprom and RusGasDobycha which will operate the planned complex.
Under the contract, Gazprom will supply the complex with 45 billion cubic meters/year of natural gas from its Valanginian and Achimov deposits in the Nadym-Pur-Taz region in the Yamal Peninsula. The complex will produce about 4 million tons/year of ethane, and more than 2.2 million tons/year of LPG. The complex’s liquefaction capacity will reach 13 million tons/year.
The remaining gas after ethane extraction and LNG production will be injected into Russia’s gas transmission system. The LNG and LPG from the complex will be marketed overseas, while the ethane output will be fed to Baltic Chemical Complex LLC’s planned $13-billion ethane cracking project with 3 million tons/year of polymers capacity. Baltic Chemical Complex LLC’s is a subsidiary of RusGasDobycha.
Nipigaz, a part of the Sibur Group, developed basic technical solutions and conducted engineering surveys for RusKhimAlyans’ complex. Nipigaz also wins the engineering, procurement, and construction (EPC) contract for the project. RusKhimAlyans has yet to select the EPC contractors for the liquefaction plant, a marine shipment terminal, raw material and finished product storages, as well as other associated facilities.
