Gazprom Management Asks for More Work on Baltic Lng Feasibility Study

MOSCOW. Sept 20 (Interfax) – Gazprom (RTS: GAZP) management decided Thursday to do more work on a feasibility study for the Baltic LNG plant, the gas giant said in a press release.

The Baltic LNG project envisions building a liquefied natural gas (LNG) plant in Leningrad region. OOO Baltic LNG, in which Gazprom Germany owns 80% and Sovcomflot has 20%, has been set up to implement the project. The plant’s capacity could range from 5 million tonnes to 7.2 million tonnes of LNG a year depending on whether it has one or two lines.

The average cost of the project is estimated at $4 billion.

LNG is expected to be exported via a single export canal.

The Atlantic Ocean market is the most attractive for LNG supplies. The plant is expected to enter this market in 2012.

Gazprom is planning to implement this project with foreign partners. Gazprom said that participation in the project’s financing should be disciplined.

Gazprom has a confidential list of four companies that are contenders to take part in the project. The contenders are required to have experience in managing similar projects, access to re- gasification and gas sales assets and have the possibility to supply raw materials for LNG.

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