Although Russia holds the world’s largest natural gas reserves and serves as the main source for energy for several countries, Russia’s Gazprom is not backing down from LNG action as it moves forward with major projects.

Speaking during the LNG 17 conference April 18 in Houston, Elena Burmistrova, deputy director general for Gazprom Export’s oil and gas products, LNG and new markets division, said the company is looking for opportunities to expand its business, focusing mainly on the Asia-Pacific region, where future demand is expected to be the highest.

The company continues to grow its global presence as it considers pipeline projects and makes way for potential project expansions.

One of the key elements of the state-run Eastern Gas Program, coordinated by Gazprom, is LNG, Burmistrova said. The program aims for an integrated gas production, transportation, and supply system in eastern Siberia and the Far East with gas exports targeting countries in the Asia-Pacific region, including China, Japan, and Korea.

Among the projects is Sakhalin. Gazprom acquired a majority stake in Sakhalin Energy (Shell, Mitsui & Co., and Mitsubishi Corp.), leading to the commissioning of Russia’s first LNG plant in 2009. Although the project had a delay, Burmistrova said, it has since “gone through a successful ramp-up. It was planned for 9.6 million tons. Now, we’re producing 10 million tons of LNG.”

Gazprom is considering expanding the Sakhalin II Project by adding a third LNG train. Currently, pre-FEED analysis is being conducted with completion anticipated in July 2013. A decision on the expansion could be made by 3Q 2013, Burmistrova said.

Work also progresses on the company’s newest projects, including Vladivostok LNG, which would supply LNG to Asia by 2018. The plant will be located on the Lomonosov Peninsula and have a production capacity of 15 MMmt/year.

“The most interesting is the resource base allocated for the Vladivostok project,” Burmistrova said, noting it is unique because it has two fields – East Siberia’s Yakutia and Irkutsk. Combined, the two have estimated gas resources of 177 Tcf.

In addition, Gazprom is working with Novatek for LNG production in the Yamal Peninsula.

“The joint venture will carry out pre-[FEED] studies, elaborate project documents, work out a plan for the LNG plant construction, and a joint program for development of the fields where the company will act as an operator for the facilities development and arrangement,” according to Gazprom’s website.

“Until the end of the year it is scheduled to approve a comprehensive program for project implementation, including the main project features and deadlines, as well as the timescale for the final investment decision-making, the financial scheme and the terms of financing.”

Yamal LNG, which would be built in the Russian Arctic by 2018, will have three trains with a capacity of 15 MMmt/year.

“We consider the real advantage of the projects is the proximity to target markets. … These projects will allow the company to stand on par with the main LNG players,” Burmistrova said.

Gazprom faces the US, where a natural gas boom has resulted in plentiful reserves and low prices, as a potential rival. However, currently, only one company – Cheniere Energy – has permission from the US federal government to export LNG.

Not knowing how much LNG could be exported from the US, Burmistrova said Gazprom can’t base its pricing on volumes that are uncertain right now. Location is among Gazprom’s advantages.

“We are real close” to the Asian market, Burmistrova said, adding it takes only one day to transport to Japan.

Although Gazprom is focusing much attention on the Far East, it has not lost sight of its European customers, one of its “oldest and most stable markets.” Burmistrova said another pipeline to the UK is being considered.

“We have been a very reliable supplier,” she continued. “We think that we will be quite attractive to our regional and to new customers plus potential clients in Asian-Pacific countries.”

Despite the company’s strong presence in the energy world, do not expect Gazprom to jump into shale play action anytime soon. Shale is not being considered for development in Russia, although it has the resources.

“Conventional gas is more attractive to us right now,” Burmistrova said, adding shale gas will not be developed in Russia for the next five to 10 years based on economics.

Contact the author, Velda Addison, at vaddison@hartenergy.com.

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