Itochu, Gazprom Plan LNG project

Japanese trading firm Itochu and Russia's Gazprom have agreed to launch a project to produce liquefied natural gas, NHK World reported.

The two parties will set up a joint venture and build a LNG plant near Vladivostok to sell liquefied natural gas to Japan and other countries, NHK said citing officials close to the negotiations.

Production is expected to commence in 2018.

Itochu hopes to increase its involvement in LNG projects in Russia in order to put itself in a better position in price negotiations for cheaper gas imports, NHK said.