UPDATE: Gazprom May Delay Shtokman Project On Market Conditions
July 21 2009 - 10:18AM
Dow Jones News
Russian gas firm OAO Gazprom (GAZP.RS) says it may delay
development of the giant Shtokman gas condensate field depending on
market conditions, the company has said in a eurobond
memorandum.
The news comes after state-controlled Gazprom announced last
month it would postpone the launch of another major field,
Bovanenkovo, on the remote Yamal peninsula, as the global recession
cuts demand for its natural gas in Russia and Europe.
Under Gazprom's original plan to develop phase one the Shtokman
field, it would produce 23.7 billion cubic meters of natural gas a
year starting 2013 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's European exports fell by almost one third in the first
half of the year to 60.4 billion cubic meters from 89.1 billion a
year earlier, due to high gas prices and lower demand due to the
recession, the company said in the memorandum.
Gazprom is developing Shtokman, in icy waters of the Barents Sea
650 kilometers northeast of Murmansk, together with France's Total
SA (TOT) and Norway's StatoilHydro (STO). They each hold 25% and
24%, respectively, in the company developing the first stage of the
field.
Putin said last month, Total is being considered as a partner to
develop the second stage of Shtokman. A Total spokesman declined to
comment on the possible delay.
Gazprom said peak production at the Shtokman project may reach
95 billion cubic meters a year.
Company Web site: www.gazprom.ru
-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937
8445; jacob.pedersen@dowjones.com
(Adam Mitchell in Paris contributed to this story)