Gazprom announced plans to build the LNG plant in the Leningrad region on the coast of the Gulf of Finland. The facility is intended to process 10 million tons of LNG per day.
The company said it would use its "best endeavors" to implement the project. Gazprom did not indicate when the project would be completed.
Gazprom chief Alexei Miller signed the deal for facility last week with regional officials.
"Gazprom has taken the decision to launch a fundamentally new and ambitious project -- the construction of an LNG plant in the Leningrad region," he said in a statement.
Gazprom's twin Nord Stream pipeline runs from the Gulf of Finland through the Baltic Sea to the coast of Germany.
Paolo Scaroni, chief executive officer of Italian energy company Eni, met last week with Miller in St. Petersburg to discuss progress made on the South Stream pipeline, a complementary gas pipeline planned though southern Europe.
Gazprom said construction on the offshore section of South Stream would start next year. A ground-breaking ceremony for the onshore section was held last year.
Notable deaths of 2014 [PHOTOS]