Gazprom, Shell ink 20-year deal

MOSCOW, April 9 (UPI) -- Russian gas monopoly Gazprom and Royal Dutch Shell signed a 20-year deal on gas pipeline development and liquefied natural gas, the Russian company said.

Gazprom chief Alexei Miller and his counterpart at Shell, Jeroen Van der Veer, signed the agreement at Gazprom headquarters in Moscow.

The agreement deals with LNG purchases by both companies from the Sakhalin Energy Investment Co. Gazprom delivered its first LNG shipments from its Sakhalin project earlier this year.

"Gazprom has consistently implemented its strategy of reinforcing the company's standing on the LNG market, and this deal will enable Gazprom to begin shipment of LNG supplies from Sakhalin II to the United States, the world's largest gas market, and other markets of the Pacific Basin starting from this year," Miller said.

The Russian gas giant said in a statement announcing the deal that its relationship with Shell would also diversify its European gas portfolio with pipeline developments. Russia seeks to increase its energy position in Eastern Europe following a bitter January row with Ukraine, which hosts the majority of Russian gas exports to Europe.

Also included are plans to expand Gazprom's presence in California and Mexico.