SOCHI, Russia, Feb. 24 (UPI) -- Russian energy company Gazprom said it signed an agreement to work with Shell on producing liquefied natural gas from the Sakhalin II project.
Gazprom Chairman Alexei Miller met with Shell Chief Executive Officer Ben van Buerden in the Russian resort city of Sochi, host of the 2014 Winter Olympics.
Both sides signed a memorandum of understanding to prepare engineering documents to enhance liquefied natural gas operations at the Sakhalin project in Russia's Far East.
Miller said in a statement Sunday the project would help anchor Gazprom's position as a key gas supplier to Asian economies.
"Novel LNG production capacities are the key to achieving a strong position in this market," he said.
Gazprom owns the only functioning LNG operation in Russia, situated on Sakhalin Island. The company said 10.8 million tons of LNG was produced from the facility in 2013.
Russia is the world's largest natural gas supplier and has courted Asian countries, which are starting to demand more natural gas to meet the needs of expanding economies.