17.06.2008
Russia's Gazprom sees Royal Dutch Shell as one of its potential partners in possible projects to produce liquefied natural gas (LNG) on the northern Yamal peninsula, its chief executive said on Tuesday.
Gazprom CEO Alexei Miller said his company had yet to decide on whether to produce LNG on Yamal, a day after another Gazprom manager said the gas giant had dropped the plan due to tough weather conditions on the gas-rich peninsula.
Miller said Gazprom might make the decision soon.
"If we create a short list (of potential partners), it will include Shell," Miller told reporters.
Shell said this month it had signed a memorandum with Gazprom on co-operation on the development of gas reserves on the Yamal peninsula and elsewhere, including the possible construction of gas liquefaction facilities.
The head of Gazprom's production department, Vasily Podyuk, said on Monday that tough weather conditions would make production of LNG -- which, unlike pipeline gas, can be exported by tanker to much wider markets -- too complicated on Yamal and that Gazprom had dropped the plan.
Gazprom's spokesman said on Tuesday Podyuk meant production of LNG on Kharasavei, one of the largest fields on Yamal, and did not intend to fully rule out production of super-cooled gas on the peninsula, where Gazprom has over 10 deposits.
Gazprom views Yamal as its key source of future gas output as production is falling at mature deposits in West Siberia. The firm has said new deposits on Yamal and in East Siberia and the Russian Far East will account for half of its output by 2020.
Source: Reuters
