Gazprom May Delay Shtokman Project Depending On Market Conditions
21 July 2009 - 8:30PM
Dow Jones News
Russian gas firm OAO Gazprom (GAZP.RS) may delay development of
the giant Shtokman gas condensate field depending on market
conditions, the company has said in a eurobond memorandum.
Under Gazprom's original plan, it would produce 23.7 billion
cubic meters of natural gas a year starting 2013 from the first
development phase of the field and up to 7.5 million metric tons of
liquified natural gas, or LNG, a year starting in 2014.
"This timeline may be revised accordingly to reflect natural gas
market conditions," the company said in the eurobond memorandum
seen by Dow Jones Newswires Tuesday.
Gazprom has seen its European exports fall by up to one third
this year, due to lower demand amid an economic recession and high
gas prices.
Gazprom is developing the Shtokman field located under harsh
conditions in the Barents Sea together with France's Total SA (TOT)
and Norway's StatoilHydro (STL.OS), which hold 25% and 24% in the
project, respectively.
Peak production at the Shtokman project may reach 95 billion
cubic meters a year, Gazprom said.
Company Web site: www.gazprom.ru
-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937
8445; jacob.pedersen@dowjones.com