Gazprom aims to supply 10 per cent of U.S. gas by 2020

By Staff Writers
Bloomberg.com

Gazprom is seeking as much as 10 percent of the U.S. gas market by 2020, after two Arctic liquefied natural gas projects start producing, deputy CEO Alexander Medvedev told reporters Tuesday.

"The volume which we have right now is just 0.5 percent of natural gas consumption of the United States, but with gas out of Shtokman and maybe Yamal LNG our share in the U.S. and Canada market would go up between 5 and 10 percent," Medvedev said.

Gazprom is aiming to develop the projects after opening Russia's first LNG plant off the Pacific Ocean coast with Royal Dutch Shell and Japanese partners in February. The state-run company, with StatoilHydro and Total, intends to make an investment decision in the first half of 2010 on Shtokman, which has enough gas to meet world demand for more than a year.

"We targeted that approximately 17 percent of the Shtokman volumes would reach North America," Medvedev said before a roundtable discussion with Royal representatives.

Gazprom will also cooperate with Novatek on a feasibility study for an LNG facility to export gas from deposits on the Yamal Peninsula, Medvedev said. Gazprom owns just under 20 percent of Novatek.

Shell remains interested in LNG projects in Russia, including on the Yamal Peninsula, said Chris Finlayson, head of Russian operations.

The Yamal Peninsula may hold 22 trillion cubic meters of gas, enough to supply world demand for more than a decade, and may produce as much as 115 billion cubic meters a year by 2015, according to Gazprom's web site.

"Even in the current depressed pricing situation with LNG in different parts of the world and relatively low prices in Henry Hub, we still do not see any danger to the feasibility of Shtokman," Medvedev said.

10 June 2009 — Return to cover.
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