Russia to produce oil from Arctic shelf and transport it to US and Canada

Russia's Gazprom proposes to produce gas from the Arctic shelf and transport it by sea to the US and Canada, Alexander Ryazanov, one of the company's executives told a Russo-American business energy summit in St Petersburg.

The Gazprom spokesman offered American companies a role in these projects which he thinks "should be of interest to American partners".

As estimated by Gazprom, gas produced at the Shtokman deposit in northern Russia can be supplied to America at reasonable and competitive prices. Transport expenses in this case will be lower than if the gas were transported from the southern districts, Ryazanov said.

At the same time, he considers it necessary to develop new production technologies for the Arctic shelf. Besides, capacities will have to be built to liquefy gas and convert it into liquid fuel for further deliveries to US and Canadian ports.

The Russian company is "already prepared to start discussing deadlines, delivery volumes, and prices," the Gazprom spokesman said.

According to him, Russia's explored gas reserves make up 46 trillion cubic metres, which is 30% of the world's potential.

The gas requirements of North America in the next 25 years will rise by 20%. In Ryazanov's view, this need cannot be met with domestic production, while Russia "has a sufficient resource to supply the US with gas over a longer term".

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