Shell looks for smaller stake in Baltic LNG as costs rise to $11.5bn

In-house valuation teams at Gazprom and Shell have estimated the total investment required to develop the long-awaited Baltic LNG plant at $11.5bn instead of the previous total of $10bn, the Kommersant newspaper revealed today. The increase in costs has prompted Shell to reduce the size of its proposed stake in the  project from its original 49% to between 25% and 35%, leaving the way open for a third party to acquire a minority stake.
Although the plant has been under consideration since 2004 it was only last year that Gazprom decide that the 10m ton capacity plant’s location was to be close to the Ust-Luga seaport. The plant will be supplied with gas from Russia’s  Unified Gas Supply System.

Source: freenews