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Herbert Smith Freehills achieved key milestones on new over EUR 20 billion mega-project in Russia

23 June 2020 | Moscow
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Herbert Smith Freehills is advising on Baltic LNG - the newest and one of the biggest integrated gas processing and LNG projects globally and currently the largest Russian national project. 

The project is being developed by RusChemAlliance ('RusKhimAlyans') - a joint venture of Russian gas giant Gazprom and RusGazDobycha. Baltic LNG will be located in the Baltic Sea port of Ust-Luga (Leningrad region, Russia). The complex will have a gas processing capacity of 45 bcm per annum and LNG liquefaction capacity of 13 mtpa. In addition to LNG, the project will produce sales pipeline gas for the EU export, ethane fraction to be supplied to the co-located gas petrochemical plant, as well as LPG and PHF to be sold direct to the market. 

On 8 June 2020, Baltic LNG project achieved a key milestone by awarding its first full scale EPC contract for the gas processing plant and technological utilities, infrastructure and offsites to NIPIGAZ (part of SIBUR group).  The project has also signed 20-year supply and offtake contracts with Gazprom and Baltic Chemical Company (the owner of the co-located ethanol plant).  Next, RusChemAlliance will be awarding the substantial set of contracts for the remaining LNG and supporting facilities for the project.
 
Herbert Smith Freehills advises the project on all legal aspects. The work on the project documents is led by Danila Logofet with Oxana Koerner being responsible for all the front end contracts, assisted by Yulia Turkina and supported by Mark Veitch, and Elvira Vanieva being responsible for the gas supply and off-take arrangements.  Vadim Panin and Olga Davydava assisted by Natalia Kraslyanskaya are leading on all the project finance issues.  
 
HSF partner Danila Logofet commented: "We are seeing a trend where integrated oil and gas companies are turning their focus to downstream projects.   These projects continue to be developed despite the ongoing pandemic and persistent low oil prices.  We are delighted to be involved in this signature project, which is a welcome addition to our downstream track record in Russia and globally."

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For further information on this news article, please contact:

Anna Volodyaeva, Business Development Lead

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