Gazprom eyes diversification with LNG

MOSCOW, April 2 (UPI) -- Russian gas giant Gazprom sees liquefied natural gas as an option to diversify its export potential amid European concerns over energy security, officials said.

Gazprom chief Alexei Miller said the LNG market provided his company with the option to expand its energy position while moving away from an exclusive reliance on transit pipelines, BarentsObserver reports.

"In a time of enhanced globalization processes in the LNG market, we see that there is a need for a new review of the (company's) strategy in the field of LNG as transit risks rise considerably and risky documents which ignore Russian interest are signed," Miller said.

A January row between Moscow and Kiev over gas arrears and contracts prompted Gazprom to disrupt gas supplies to Ukraine. Europe receives about 25 percent of its gas from Russia, though 80 percent of that travels through Ukrainian pipelines.

That dispute and diplomatic concerns over several gas transit arteries in Europe have left the pipeline sector tumultuous.

Cargo LNG transits offer a greater potential for companies to reach a broader market base. Gazprom launched its first LNG plant on Sakhalin Island this year, with a customer base that includes Japan and the United States.

That LNG facility delivered its first shipments to Japan on Wednesday, but several Asian customers are predicting saturation in the LNG market.