Gazprom may rope in Shell for Yamal LNG

Russia’s gas giant Gazprom is considering inviting Royal Dutch Shell to participate in liquefied natural gas projects on the Arctic Yamal Peninsula, Gazprom's Chief Executive Alexei Miller was cited as saying yesterday in the Wall Street Journal.

"I'm certain that the experience from joint work at Sakhalin 2 can lay the foundation of future cooperation in LNG, including on Yamal," Miller said following a meeting with Shell's CEO Jeroen van der Veer during the St Petersburg Economic Forum.

In 2007, Shell ceded its controlling stake in the Sakhalin 2 project off Russia's Pacific coast to state-controlled Gazprom. The project started production of LNG in March.

Gazprom is considering production of LNG in the arctic Yamal region, but hopes to attract partners to share the financial and technical challenges.

International oil majors such as ConocoPhillips, Exxon Mobil and Total have also expressed interest in the project.

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