Gazprom postponing construction of LNG plant in Vladivostok

|By:, SA News Editor

Gazprom (OTCPK:OGZPY) says it is postponing construction of a liquefied natural gas plant in Russia's far east, as it focuses its efforts on delivering more gas to China via pipelines.

Vladivostok LNG was intended to boost Russia's sales to Asia by increasing its share of the liquefied natural gas market, where it lags competitors, but CEO Alexei Miller says it is no longer a priority.

By shelving the project, Gazprom is betting on the success of delivering gas to China by pipeline; last year, it signed a contract to supply the country with hundreds of millions of dollars of natural gas after more than a decade of talks.

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