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16-18 June 2020 • Moscow • Crocus Expo

Russia’s plays in Baltic oil & gas

The Baltic is comparatively small compared to other Russian acreages, but it still holds substantial resources. As such, there is plenty of activity to watch across the region, with potential plays heading into the next decade.
Russia’s plays in Baltic oil & gas

Russian oil & gas activity in the Baltic Sea

Nord Stream II – European energy’s most controversial project?

Nord Stream II is possibly Russia's largest Baltic project.

Nord Stream II: an $11bn behemoth of a pipeline, snaking 1,200km beneath the seabed from Ust-Luga on in the Gulf of Finland to its terminus at Greifswald on Germany’s northern coast. Capable of pumping 55 billion cubic metres of gas annually to European across two streams, it’s destined to become a vital link for Europe-focussed gas supplies.
With European gas demand rising over 5.9% in 2017, you’d think this would be a simple project, free of major snags. But, Nord Stream II’s gestation has been anything but smooth. The shifting political situation between Russia and the EU has had a big impact, but it looks like the pipeline is ready to come online in 2019.
An agreement between Russia and Germany, Russia’s largest European gas customer, is set to give Nord Stream II the green light. That means Gazprom, the pipeline’s chief operator, is on the furge of securing further substantial revenues from its European exports. It already runs Nord Stream I, so this pipeline has added more Baltic heft to Russia.

Gazprom developing Baltic LNG Hub

LNG cargoes will soon start flowing from Gazprom's Baltic LNG hub.

Nord Stream II is not Gazprom’s only major play in the Baltic region. It has been developing a Baltic LNG Station for several years now. Perched on the coast in the Leningrad region, once more at Ust-Luga, this latest facility is predicted to generate 10 million tons of LNG per year.
Where is this gas going? The primary target markets aren’t European, as Nord Stream will take care of those, but rather across the Atlantic, the Middle East and South-East Asia.
Gazprom is in good company on this project. Its chief partner is Shell, having inked an agreement to build the LNG hub in 2016. A joint venture was set up in 2017 too, signalling both parties commitment to working on this particular project. A design concept was agreed on in 2018 too, so the project is going ahead after initial explorations in 2013.
As mentioned above, initial production is expected to hit 10m tons per year. That’s based on a two-train infrastructure. Plans are in place to potentially add a third train, which would bump LNG output up to 15m tons a year.
But such a facility does not come cheap. What began as a $3bn project has ballooned, with costs now forecast as a $18.5bn.

Lukoil explores Baltic oil fields

Lukoil is exploring the Baltic with an eye to producing oil there.

Long-term plans position Lukoil as Russia’s chief Baltic exploratory, with four fields falling under this Russian independent’s gaze.
From now until 2030, Lukoil intends to develop the D-41, D-29, D-6-Yuzhnoye, and D-2 fields. Peak aggregate output across these blocks is expected to reach 2.15m tons by 2027. Despite the effort required, the share of Lukoil’s total oil production from Baltic acreage would be just 2%.
Even so, Lukoil is still happy to continue investigating Baltic deposits. It has confirmed its intent to drill prospecting and appraisal wells. Lukoil will also cast its gaze over the Baltic and Baltic Coast blocks offshore.
Kaliningrad, Russia’s territory in Western Europe, sits on the Baltic Coast, and off the coast lies the Nadezhda block. Lukoil considers this worth investigating too, and it is gearing up to begin further exploration in this particular zone.
Lukoil was also responsible for discovery of the first mid-sized field the Baltic has to offer. Discovered in 2015, D33 has a yield of 21.2m tons.

Oil & Gas technologies required in the Baltic

It’s a mixture. Lukoil’s needs, for instance, largely focus on offshore and subsea E&P technology, so equipment like specialist drill heads, underwater umblicials and so on.
Gazprom, on the other hand, requires an entire suite of LNG production and transmission tech at its planned Baltic LNG hub.
Whatever is required, you can find the Baltic oil & gas community’s most interested procurement managers and buyers at MIOGE.

MIOGE 2019: Russia’s no.1 international oil & gas equipment exhibition 

The Moscow International Oil & Gas Exhibition is the meeting place for the international community and Russia’s oil & gas industry. Over 560 companies trust the show to let them meet and do business with representatives from across the value chain.
Here, you’ll meet the players behind the Russian oil & gas projects listed above, as well as getting details on Russia’s project landscape from to 2025 and beyond.
Find procurement, engineering and purchasing specialists exclusively at MIOGE. 
Russian majors, including Gazprom, Tatneft, Rosneft and Lukoil, attend the show every year. Why? To meet new partners and suppliers of in-demand oil & gas equipment and technology.
To reserve a stand, click here
Want more information on how MIOGE can help grow your business in Russia’s enormous oil & gas industry? Contact our team today.