Saturday, February 6, 2010

Gazprom Delays Natural Gas Project

MOSCOW, Feb 5, 2010

State-run Russian energy giant Gazprom will delay development of the giant Shtokman gas field in northern Russia by three years because of "changes in the market situation," shareholders said Friday.
Pipeline gas production is expected to start in 2016 while liquified natural gas production should begin in 2017, after final investment decisions in 2011, a statement issued by shareholders said.
The gas field is owned by a consortium made up of Gazprom, Total and Statoil.
Gazprom's original plan called for production, estimated at 23.7 billion cubic metres of natural gas a year, to begin in 2013.
The statement issued Friday cited "changes in the market situation and particularly in the liquified natural gas market" for the delay.
Gazprom announced in July that it might delay the launch of the gas project to reflect market conditions.
The Shtokman field holds natural gas reserves estimated at 3.8 trillion cubic metres.
Located in the Barents Sea, it is seen as being technically challenging to exploit.

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