Gazprom and Shell expand partnership in energy market

Gazprom and Shell have expanded their cooperation in the LNG and energy sector with a new five-year deal.

The two companies have signed an agreement of strategic cooperation focusing on energy markets, implementation of projects along the entire value chain, cooperation in digitalization of technologies, and reduction of greenhouse gas emissions.

Alexey Miller, chairman of the Gazprom management committee, and Ben van Beurden, CEO of Royal Dutch Shell, reviewed the current achievements brought by the cooperation between the companies.

Sakhalin II project that includes Russia’s first LNG plant was discussed in particular. The project operator is Sakhalin Energy (owned by Gazprom – 50 per cent plus one share, Shell – 27.5 per cent minus one share, Mitsui – 12.5 per cent, and Mitsubishi Corporation – 10 per cent). Last year, a record-high volume of LNG, amounting to over 11.6 million tonnes, was produced and shipped under the project.

Special emphasis was made on the European energy sector decarbonization and greenhouse gas emissions reduction. It was noted that natural gas, due to its eco-friendliness, can play a significant role in meeting Europe’s climate goals.

The previous agreement between the companies was signed in 2015.