Gazprom Concludes First Pipeline Gas for LNG Swap Deal

Gazprom said it and Gaz de France have agreed to a deal which will see Gazprom deliver Gaz de France with pipeline gas in exchange for liquefied natural gas (LNG), which Gazprom will sell in the US.

Under the agreement, Gazprom will supply Gaz de France with extra pipeline gas in exchange for a shipment of LNG from MED LNG & GAS, a joint venture of Gaz de France and Algeria' Sonatrach, according to a statement on Gazprom's website.

The deal was also signed by Shell Western LNG, which agreed to buy the LNG from Gazprom upon delivery next month to Cove Point regasification terminal in Maryland, which is part-owned by Shell.

Gazprom Vice President Alexandre Medvedev said at a news conference that Gazprom will deliver 80 mln cubic metres of gas under the deal, in exchange for an equal volume of LNG.

He declined to give precise financial details, but said the deal was 'economically beneficial' to both sides.