Baltic LNG

History

Preparations of the original Baltic LNG project started in 2004. On 15 October 2004, Baltic LNG AG was registered in Baar, Switzerland (later in Zürich) as a joint venture of Gazprom and Sovkomflot. In 2005, Gazprom started to negotiate with Petro-Canada to construct the LNG plant and to conclude a supply agreement for LNG shipments to Canadian market. On 14 March 2006, Gazprom and Petro-Canada signed an agreement to proceed with initial engineering design of the Baltic LNG plant. It was agreed to ship LNG from the Baltic LNG plant to Petro-Canada's LNG regasification facility in Gros-Cacouna, Quebec.

In 2006, Gazprom started to look for other markets and partners inviting 17 energy companies from Europe, Asia and North America for negotiations. On 21 September 2007, Gazprom decided to continue work on the feasibility study, leaving it unclear when it would make a final decision whether to build the plant. On 7 February 2008, Gazprom terminated the project because it considered the Baltic LNG plant less competitive than other projects in the region — the Nord Stream 1 pipeline and the possible LNG facility of the Shtokman field.

The project was renewed in 2013. In January 2015 it was announced that the new location of the project would be near the Ust-Luga Port.

In October 2021, Gazprom and RusGazDobycha announced they would build a plant at Ust-Luga to process ethane-containing natural gas and a large-scale liquefied natural gas (LNG) production plant with a capacity of 13 million tons of LNG per year. High-ethane gas from the Tambeyskoye gas field and the Achimov and Valanginian deposits of the Nadym-Pur-Taz region will supply the plant.