Are you sure?

Gazprom mulls 3 LNG plants after Shell's Sakhalin-2

OAO Gazprom, Russia's natural-gas monopoly, is considering three liquefied natural gas projects of its own after buying a controlling stake in the country's first LNG project last year, Deputy CEO Alexander Medvedev said.

OAO Gazprom is mulling the construction of LNG export terminals on the Baltic Sea and from fields on the Yamal peninsula and the offshore Shtokman development, Medvedev said yesterday at the World Economic Forum in Davos, Switzerland. „LNG will be part of Shtokman, definitely,” Medvedev said. „In view of increased reserves of gas, it calls for a pipeline and LNG.”

Gazprom, which still exports all its gas via pipeline, has no experience in producing LNG, gas chilled to a liquid that can be shipped by tanker. In December it took a controlling stake in Royal Dutch Shell Plc's Sakhalin-2 project, which includes Russia's first LNG terminal. The Arctic Shtokman project was originally planned to open the US gas market to Gazprom before Gazprom CEO Alexei Miller said in October that Shtokman's priority had switched to pipeline deliveries to Europe.

The other two LNG terminals are more distant, Medvedev said. Baltic LNG is a projected plant near St. Petersburg. Another LNG terminal may appear on the Arctic Yamal peninsula, which Gazprom has identified as a key to production growth. (Bloomberg)