Gazprom To Swap Pipeline Gas For Shell’s LNG

By Anonymous

Gazprom has announced an innovative deal in which it is to swap natural gas from its pipelines for an LNG cargo that is being sold to Shell.

The agreement was made between Gazprom’s marketing and trading unit, Gaz de France, Med LNG & Gas and Shell. It will result in Gazprom delivering extra gas to GDF for supply to domestic users in return for an LNG Cargo owned by Med LNG & Gas – a company jointly owned by GDF and Sonatrach – and to be sold to Shell Western for delivery to the Cove Point import terminal in Maryland.

Gazprom’s deputy chief executive Alexander Medvedev said: “With these agreements, Gazprom has shown that by leveraging our position in pipeline gas in Europe, we are able to access global markets with Russian gas by swapping pipeline gas for LNG.”

Copyright Oildom Publishing Company of Texas, Inc. Jan 2006