The Shtokman Project involves the development of the Shtokman gas and condensate field, located in the Barents Sea. This will be the first commercial development of the Arctic basin, which is estimated to contain 200 Bboe.

The project will transport gas from a floating production unit through two 550 km, 36 inch diameter trunk pipelines to onshore facilities, including a LNG plant with a production capacity of 7.5 MMt/a.

At a regular board meeting in Zurich, Shtokman Development AG approved two phase flow as the technical concept for the project; gas and condensate will be delivered onshore from the field and then separated.

The board of directors also confirmed the implementation milestones for the project, with first pipeline gas expected in 2016 and LNG plant start-up expected the following year.

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Shtokman Development AG is now in the process of preparing the integrated financial investment decision, which it aims to deliver by the end of 2011.

The Shtokman Development AG consortium is comprised of Gazprom with a 51 per cent interest, Total S.A. with a 25 per cent interest and Statoil ASA with the remaining 24 per cent interest.