The New Nation - Internet Edition

AFP, Moscow

Russian energy giant Gazprom has shortlisted Anglo-Dutch Shell and France's Total to take part in a liquefied natural gas (LNG) project in Russia's Arctic region, a top Gazprom official said yesterday.

"Total and Shell are on the shortlist" for the project in the Yamal region of northern Russia, Alexander Medvedev, deputy head of Gazprom, said on the sidelines of a Gazprom meeting in Moscow, Russian news agencies reported. The final list will be drawn up by the first quarter of 2010, he said.

Medvedev also said Gazprom was in talks on the project with Japanese industrial groups Mitsui and Mitsubishi, which are both currently working with Shell and Gazprom on Russia's first LNG plant in the Russian Far East.

The Yamal peninsula in northern Russia is estimated to hold gas reserves of 5.9 trillion cubic metres. Gazprom has set development of the region as a top priority as production at its current Soviet-era fields begins to decline.

Russia has said it wants to develop its LNG capacity in order to diversify exports away from a traditional focus on Europe reliant on pipeline transport, towards new Asian and US markets.