Baltic LNG dealt blow as Shell exits Gazprom project

Shell has pulled out of Baltic LNG, the proposed 13 mmtpa project led by Gazprom in North West Russia, citing an altered development concept as the reason for its exit. The withdrawal will have no impact on Shell's finances as it hadn't yet reached the point of taking an equity stake in the project. However, Shells exit is a blow for Baltic LNG, which had started to gather momentum over the past year. Furthermore, Shell was an important technological partner for Gazprom on the project. We give our take on what this means for the project and Gazprom’s LNG ambitions.