Gazprom and Shell discuss further steps for implementing joint projects
RELEASE
Release
Vladivostok hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Ben van Beurden, Chief Executive Officer of Shell as part of the Eastern Economic Forum.
The meeting participants addressed a variety of issues of the strategic cooperation development. Particular attention was given to the project for constructing the third LNG train within the Sakhalin II project as well as the asset swap deal-related issues.
Within the signed Agreement of Strategic Cooperation a decision was made to form a joint coordination committee for reviewing a whole range of issues on the priority lines of activity.
The parties also discussed further steps within the joint project for the Nord Stream 2 gas pipeline construction.
Background
Shell is a British-Dutch oil and gas company focused on hydrocarbon production, processing and marketing in over 70 countries worldwide.
As part of Sakhalin II, Russia’s first LNG plant with the annual capacity of 9.6 million tons of LNG was commissioned in 2009. Sakhalin Energy is the Sakhalin II project operator with the ownership distributed among Gazprom (50 per cent plus one share), Shell (27.5 per cent minus one share), Mitsui (12.5 per cent) and Mitsubishi (10 per cent). The plant produced 10.7 million tons of LNG in 2014.
In 2014 Gazprom and Shell signed the memorandum-roadmap to prepare FEED documents for the third LNG production train within the Sakhalin II project.
On June 18, 2015 Gazprom and Shell signed a Memorandum on implementing the project for constructing the third train at the LNG plant within Sakhalin II. The document reflects the parties’ firm commitment to making the project a reality and it also proves the relevancy of the project’s transition to the investment phase.
On June 18, 2015 Gazprom and Shell signed an Agreement of Strategic Cooperation stipulating the strategic partnership development between Gazprom and Shell across all the segments of the gas industry, from upstream to downstream, including a possible asset swap.
On September 4, 2015 Gazprom, E.ON, Shell, OMV, BASF and ENGIE signed a Shareholders Agreement to construct the Nord Stream 2 gas pipeline with an aggregate annual capacity of 55 billion cubic meters of gas from Russia to Germany across the Baltic Sea.