Gazprom Mulls Bigger Ust-Luga

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Gazprom last week signed a memorandum on possibly adding a third liquefaction train to the 13 million metric ton/yr LNG facility in Ust-Luga. The two-train plant is part of the 45 Bcm/yr Ust-Luga gas-processing and LNG project scheduled to start in 2024 and estimated to cost around $20 billion. Gazprom develops Ust-Luga via the 50-50 RusKhimAlyans joint venture with compatriot RusGazDobycha. RusKhimAlyans CEO Kirill Seleznyov said the company would report to shareholders once it calculates the economics of an expanded facility. He said the third train might have the same capacity as the existing two and that it would not require an increase in gas-processing capacity at Ust-Luga. That might mean the train would use some of the 19 Bcm/yr of the remaining dry gas that Gazprom planned to pipe into the Nord Stream 2 export pipeline.

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