Gazprom, Novatek Sign LNG Deal to Focus on Asia

Gazprom and Novatek signed a deal Thursday to form a joint venture to produce liquefied natural gas for Asia, as it accelerates a push to decrease its dependence on Europe, Wall Street Journal has reported.

The project on the remote Yamal peninsula in Russia's Arctic could produce 16.5 million metric tons of LNG.

"Considering Gazprom's resource base, we can speak of a doubling of LNG production on Yamal," said Gazprom Chief Executive Alexei Miller, referring the LNG project Novatek is already developing on Yamal with France's Total, which is expected to launch in 2016 with a planned annual capacity of 16.5 million tons, the Journal reported.

The companies didn't say what share they would each have in the venture. They intend to approve the main parameters of the project, including a timetable for making a final investment decision, by the end of the year, Gazprom said.