Gazprom CEO: May Cooperate With Shell On Yamal LNG Project

Russian gas giant OAO Gazprom (GAZP.RS) is considering inviting Royal Dutch Shell PLC (RDSA) to participate in liquified natural gas projects on the Arctic Yamal Peninsula, Gazprom's Chief Executive Alexei Miller said Thursday.

"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 (COP), Exxon Mobil Corp. (XOM) and Total SA (TOT) have also expressed interest in the project.

Company Web site: www.gazprom.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; [phone]; [e-mail]