*Shell.
St. Petersburg — Royal Dutch Shell has decided to exit a Baltic liquefied natural gas (LNG) project led by Russian state gas major Gazprom on the Russian Baltic coast.
The development comes as Western firms struggle to expand in Russia because of pressure from sanctions imposed by the United States, while for Gazprom it could mean limited access to Shell’s technology as well as the need to fund the project without the help of the Anglo-Dutch major.
Shell, which has a long history of energy cooperation with Russia, said earlier it was studying the possible implications of a recent decision by Gazprom to move towards the full integration of its Baltic LNG and gas processing plants.
“Following Gazprom’s announcement on March 29 regarding the final development concept of Baltic LNG, we have decided to stop our involvement in this project,” Cederic Cremers, Shell Russia’s chairman, said in a statement.
“We have a number of other ongoing projects with Gazprom, including as part of the Strategic Alliance established between the two companies in 2015, which are not impacted by this decision,” Cremers added.
Gazprom declined to comment.
Follow us on twitter
- Reuters
