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Gazprom To Direct Shtokman Gas To Asia

Gazprom CEO Aleksei Miller told journalists in Moscow on May 25 that all of the export production of the Far North Shtokman natural-gas field will be liquefied.

Gazprom anticipates demand to supply gas to Europe via pipelines will fall and intends to ship the liquid natural gas (LNG) to Asian markets.

"The balance between pipeline and liquefied gas is changing toward LNG," Miller said. "We are talking about 100 percent liquefaction...."

The announcement comes following talks about the project between Miller, Russian President Vladimir Putin, and Helge Lund, CEO of Norway's Statoil.

The business daily "Kommersant" reported on May 25 that Statoil is unhappy with the LNG plans and with cost overruns generally and intends to back out of the Shtokman project.

The Shtokman gas field is one of the largest in the world.

Based on reporting by AFP, Interfax, "Kommersant"