Reuters: Asia eyes Russian Arctic gas as Australian costs climb

Plans to export gas from the Yamal peninsula on Russia's Arctic coast are attracting Asian gas buyers and investors who have been put off Australian developments by soaring costs, according to the Yamal project's owner.

Novatek, which holds 80 percent of the Yamal liquefied natural gas (LNG) development licence but has no rights yet to export future production, is offering for sale a 29 percent holding to help fund development.

State-backed number-one Gazprom's monopoly on Russian gas exports is seen as a major barrier to that sale, and to the project's future. However, access to major resources is increasingly limited worldwide, and Moscow has just launched a review of whether to liberalise gas exports.

In addition, according to Novatek's chief financial officer Mark Gyetvay, the rising costs of Australian projects being pursued by Royal Dutch Shell, Chevron and others are increasing the attraction of Yamal. MORE