Russia's Gazprom Joins Canadian-French Consortium In $840M LNG Terminal Project In Quebec

Ottawa, Canada (AHN) - Russian oil monopoly Gazprom has agreed to join a Canadian-French consortium in shipping gas to the North Atlantic markets through the development of a liquefied natural gas (LNG) terminal in Quebec.

Gazprom will buy a majority stake in the proposed Rabaska LNG Terminal in Levis, Quebec in eastern Canada. The terminal is a joint venture project of Gazprom, Enbridge Inc., Gaz Metro and Gaz de France, and is estimated to cost $840 million.

The Rabaska terminal, Russia's first investment foray in the North American oil industry, will receive gas supplies from Gazprom's Shtokman field, located at the central part of the Barents Sea, some 280 miles northeast of Murmansk, Russia. Shtokman is considered among the largest natural gas fields in the world.

Gazprom will be exporting gas to Canada through Rabaska of up 500 cubic feet of LNG per day. The terminal is expected to be completed in time for the first delivery in 2014.

The consortium has already received federal and provincial government permits to start constructing the terminal. An agreement among the member companies of the consortium is expected to be finalized before the end of the year.