Gazprom Strikes First LNG Swap Deal with BG, Shell

Aug 08, 2005 (Dow Jones Commodities News via Comtex) MOSCOW (Dow Jones)

Gazprom Marketing & Trading Ltd., the U.K.-based marketing and trading subsidiary of Russian state gas monopoly OAO Gazprom (GSPBEX.RS), said Monday it has executed agreements with Shell Western LNG BV (RDSB.LN) and BG Group PLC (BRG) for its first liquefied natural gas cargo transaction for delivery to the U.S.

The LNG, purchased from BG, will be delivered to Shell in the beginning of September at the Cove Point, Maryland, U.S. LNG receiving terminal, on an ex-ship basis, where Shell holds regasification capacity.

With this first LNG cargo delivery into the U.S., Gazprom has taken the first step towards becoming a leading LNG supply, shipping and marketing company.

Gazprom is now focusing on its goal to expand its LNG marketing and trading activities in preparation for the first availability of Russian-produced LNG in a few years time.

Gazprom Marketing & Trading also announces that John Hattenberger has joined as director of LNG.

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