Alexey Miller, Chairman of the Gazprom Management Committee, and Masami Iijima, Chairman of the Board of Directors of Mitsui & Co. met in Moscow to discuss current issues related to bilateral collaboration, including the Sakhalin II project, Russia’s first LNG plant.
The Sakhalin II project includes the ongoing development of the Piltun-Astokhskoye and Lunskoye oil and gas fields in the Sea of Okhotsk under a production sharing agreement. The Trans-Sakhalin pipeline system conveys extracted oil and gas via an onshore processing facility to the Prigorodnoye production complex that comprises an LNG plant and an oil export terminal.
Alexey Miller and Masami Iijima also considered the avenues for further cooperation, paying particular attention to the Baltic LNG project. A joint design concept (pre-FEED) is currently being developed for the project. The plant will be built near the seaport of Ust-Luga. Its annual capacity will amount to 10 million tonnes.
Mitsui’s major business areas include the marketing of, and investment in, oil and gas production and processing, as well as energy infrastructure development. Gazprom and Mitsui are partners in the Sakhalin II project, which includes Russia’s first LNG plant. The Sakhalin II operator is Sakhalin Energy Investment Company Ltd.
In December 2016, Gazprom and Mitsui signed the Agreement of Strategic Cooperation. The document envisages collaboration in various areas, including Sakhalin II project expansion and LNG bunkering.
In September 2017, Gazprom and Mitsui inked the Framework Agreement for cooperation on small- and mid-scale LNG.
In September 2018, Gazprom and Mitsui signed the Memorandum of Understanding on the Baltic LNG project. In June 2017, Gazprom and Shell signed the Heads of Agreement to set up a joint venture. The document describes the concept behind the joint venture, which will secure financing for and carry out the design, construction and operation of the LNG plant in the Leningrad Region. The parties also inked the Joint Study Framework Agreement to conduct feasibility studies for the Baltic LNG project.
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