Shtokman gas field delayed, Gazprom says

MOSCOW, Feb. 8 (UPI) -- Market conditions for liquefied natural gas prompted a decision to delay activity at the Shtokman gas field for several years, Russian gas giant Gazprom said.

Gazprom along with its partners at Norway's Statoil and French supermajor Total said the market situation, "particularly in the LNG market," necessitated a delay for a final investment decision to the end of 2011.

"The FID on pipeline gas is planned to be taken in March 2011, and the FID on LNG before the end of 2011," the Russian gas monopoly said. "According to the shareholders' opinion this will allow for pipeline gas production start up in 2016 and LNG in 2017."

The three companies entered into a joint venture for the Shtokman field in the Barents Sea in February 2008. The field holds an estimated 134 trillion cubic feet of gas, with deliveries of Russian gas slated for markets in the Atlantic basin.

The initial phase of development anticipated yields of 836 billion cubic feet of gas per year, with pipeline deliveries expected by 2013 and LNG by 2014.

Gazprom in July suggested market conditions could force delays at Shtokman, though the company said the partnership remained committed "to actively continue working on its joint implementation."