Gazprom, Linde in Ust-Luga complex deal

Document signed on main terms of prospective EPSS contract with Linde for Gas Processing Complex in Ust-Luga

RELEASE A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Wolfgang Reitzle, Chairman of the Board of Directors of Linde, took place today in St. Petersburg.

The parties reviewed current issues of cooperation, including Gazprom’s Amur Gas Processing Plant (GPP) construction project. Linde’s equipment for cryogenic gas separation and for helium production is employed at the enterprise. The GPP’s first two production trains are being prepared for commissioning at the moment.

The meeting also touched upon the project for the creation of the Gas Processing Complex in Ust-Luga as part of the Complex for processing ethane-containing gas (GPC of CPECG).

Kirill Seleznev, Director General of RusKhimAlyans, and Juergen Nowicki, CEO of Linde Engineering, signed an agreement of intent in the presence of Alexey Miller and Wolfgang Reitzle. The document outlines the main terms and conditions of a prospective EPSS contract providing for engineering services, equipment supplies, and maintenance of gas processing and off-site facilities.

Background

Linde plc is one of the world’s largest companies focused on industrial technologies for natural gas treatment and separation with the recovery of ethane, propane and heavier hydrocarbon fractions. In addition, the company designs and builds cryogenic facilities for natural gas and helium liquefaction. Linde Engineering is an engineering and technical subdivision of Linde.

Gazprom and RusGazDobycha are implementing the project for the Gas Processing Complex (natural gas processing and liquefaction complex) near the settlement of Ust-Luga, with the RusKhimAlyans special-purpose company as the project operator. It is the anchor project of the major gas processing and chemical cluster that is being established in the region.

The complex will have the largest capacity in Russia in terms of gas processing (45 billion cubic meters per year) and will be the largest in northwestern Europe in terms of liquefied natural gas (LNG) production (13 million tons per year). In addition to LNG, its commercial products will include ethane fraction, liquefied petroleum gases, and pentane-hexane fraction.

RusGazDobycha will be responsible for the construction of the technically affiliated gas chemical facility that will process ethane generated by the complex and produce up to 3 million tons of various polyethylene grades. Under the existing long-term contracts, the CPECG will be provided with raw materials for not less than 20 years.

Original source: https://www.gazprom.com/press/news/2021/march/article525786/