Gazprom, Shell sign memo on Baltic LNG project, could swap BG assets

REUTERS -- Gazprom and Shell recently signed an MOU on construction of an LNG plant on the Russian coast of the Baltic Sea.

The MOU says the companies will look into possibilities of building the LNG plant in the port of Ust-Luga with a capacity of 10 metric MMtpy.

Gazprom and Shell are already partners in Russia's only LNG plant on the Pacific island of Sakhalin, which has a capacity of 10 metric MMtpy.

Gazprom has said the Baltic LNG plant could produce up to 20 metric MMtpy of frozen gas.

Also, in an asset share swap that was announced in 2015, Gazprom could acquire control over some of the assets Shell purchased for $54 B in February 2016 from BG Group, according to Gazprom's Deputy CEO, Alexander Medvedev.

Shell previously stated that it intends to sell as much as $30 B worth of assets and exit 10 countries after merging with BG. It has not commented on which assets it plans to offer to Gazprom.

(Reporting by Denis Dyomkin; writing by Vladimir Soldatkin; editing by Jack Stubbs; additional writing by Gas Processing editors)

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