The main issues between Shell and Gazprom on creation of a joint venture for the Baltic LNG project have been resolved. The head of Shell in Russia Sederik Kremers told reporters that it remained to discuss a few small points and the joint venture would be created.

"We are very close to the conclusion of an agreement on the creation of the joint venture. I can't tell you the exact day, because the commercial negotiations are still going on, but we are very close, just a couple of small issues remain to be resolved. All fundamental issues of the cooperation have been resolved," - he commented on the conclusion of the agreement with Gazprom.

Kremers said that now pre-FEED of Baltic LNG was conducted. The process will take from 6 to 9 months. "Then we will complete the FEED and make the final investment decision. The speed of the decision-making will depend on how quickly progress will be made on the engineering part," - he explained.

A memorandum of understanding on the Baltic LNG project between Gazprom and Shell was signed in June 2016. The project provides for the construction of a LNG plant with a capacity of 10 million tons per year in the port of Ust-Luga in the Leningrad region. The capacity of the project can be increased to 15 million tons per year.

In June 2017, the parties signed a document defining the main terms of the agreement on the joint venture, which would be engaged in design. At the same time, Gazprom and Shell signed a framework agreement on joint technical and economic research on the project.

KeyFacts Energy Industry Directory: Rusmininfo