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You're reading: Shell considering how to use floating LNG plant in Russian Arctic

Moscow - Royal Dutch Shell's floating liquefied natural gas (LNG) plant technology could be used in the Russian Arctic, the oil major's CEO, Peter Voser said in an interview with national daily Kommersant published on Monday.

Shell is currently building the first floating LNG plant at its Prelude field off the coast of Australia.

The application of this technology in Russia is quite realistic, and Shell is now working on drafting a design for such a plant for use in the Arctic, Voser said. This field could be a good continuation of cooperation between Shell and Russian gas giant Gazprom, particularly since Russia has a wealth of experience in marine shipping in harsh climatic conditions, including northern ice and seas, he said.

However, it is too early to assess the effectiveness of floating LNG plant technology in the Arctic, as this project is still at the conceptual stage, he said. In Australia, where such a plant will be used for the first time, it will be 200 km offshore. There will be no need to build a pipeline to shore and in these conditions, at that location this technology is the most suitable, Voser said.

Shell is seen as a potential partner for Gazprom in the development of the huge Shtokman field in the Barents Sea. The field, though rich in reserves, is technically difficult to develop. Gazprom and its foreign partners have been discussing how to implement the project for years, but have yet to come up with a profitable plan.

Voser declined to comment on the outlook for working with Gazprom on the Shtokman project specifically.

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