Under the agreement the companies will conduct preliminary engineering studies to provide cost and schedule estimates for the LNG plant on the Baltic Sea near Russia’s second city, RIA Novosti reporeted.

LNG from the plant would be supplied to Petro-Canada’s proposed LNG re-gasification facility in Gros-Cacouna, Quebec. Gas from this terminal would be trans-shipped to markets in Quebec and Ontario. "LNG is going to be a big part of the future of the gas market in North America," said Ron Brenneman, president and chief executive officer of Petro-Canada. "We see this agreement as an important part of our overall growth strategy."