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Russia's Gazprom, Shell start talks on Baltic LNG project - Interfax

Reuters - UK Focus

MOSCOW, Sept 7 (Reuters) - Russia's Gazprom and Royal Dutch Shell (Xetra: R6C1.DE - news) have started commercial talks on Baltic LNG project, Interfax news agency quoted Gazprom Chief Executive Alexei Miller as saying on Monday.

The Russian gas producer plans to build a liquefied natural gas plant in the Baltic Sea port of Ust-Luga with an annual capacity of 10 million tonnes. It (Other OTC: ITGL - news) wants to increase output to 15 million tonnes a year later on.

Russia's Kommersant newspaper said in June that Gazprom may offer up to 49 percent in the project to a strategic partner, with most likely candidates being Shell (LSE: RDSB.L - news) or a consortium of Japanese firms. (Reporting by Katya Golubkova, Editing by Gabriela Baczynska)