Russian gas monopoly OAO Gazprom (GAZP.RS) gained its first direct foothold in the U.S. gas market Thursday after signing a new agreement with Royal Dutch Shell PLC (RDSB.LN) to swap a million metric tons a year of liquefied natural gas destined for North America for the equivalent amount of natural gas delivered by pipeline in Europe.
Gazprom affiliates will take over some of Shell's capacity to ship LNG from the Sakhalin-2 project in Russia's Far East into Sempra Energy's (SRE) Costa Azul import terminal in Baja California, Mexico, and deliver it by pipeline to Southern California. In return, it will deliver gas to various locations in Europe through its extensive pipeline network, which Shell will sell to new and existing customers there, a Shell spokeswoman said.
Gazprom has been striving to internationalize its gas business for years, making agreements to explore and develop gas resources in Africa, Latin America and setting up retail businesses in Europe.
Its U.K.-based subsidiary Gazprom Marketing and Trading has been buying and selling LNG cargoes on the open market for several years.