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Gazprom enters US via Shell deal
Source: Agencies |
April 10, 2009, Friday
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Print Edition
THE world's largest natural gas company, Russia's OAO Gazprom, has after years of attempts finally gotten a foothold in the United States, the world's biggest gas market.
A supply agreement, part of a multipart contract reached with Royal Dutch Shell Plc, was announced late Wednesday.
The contract, signed in Moscow by Gazprom CEO Alexei Miller and his Shell counterpart Jeroen Van der Veer, guarantees the two firms will deliver 1 million tons of Russian liquefied natural gas annually until 2028.
Under the deal, Gazprom gets access to a Shell terminal in Baja California, Mexico, that will turn Russian LNG into gas that can be sent through pipelines to the US. The LNG will be shipped from Sakhalin Island in the Pacific.
Shell then gets an equivalent amount of regular pipeline gas for distribution in Europe.
A supply agreement, part of a multipart contract reached with Royal Dutch Shell Plc, was announced late Wednesday.
The contract, signed in Moscow by Gazprom CEO Alexei Miller and his Shell counterpart Jeroen Van der Veer, guarantees the two firms will deliver 1 million tons of Russian liquefied natural gas annually until 2028.
Under the deal, Gazprom gets access to a Shell terminal in Baja California, Mexico, that will turn Russian LNG into gas that can be sent through pipelines to the US. The LNG will be shipped from Sakhalin Island in the Pacific.
Shell then gets an equivalent amount of regular pipeline gas for distribution in Europe.
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