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Shell Acquires Gazprom's First LNG Cargo to the U.S.

Bringing the globalization of the natural gas industry one step further, Shell on Friday reported that it has acquired Gazprom Marketing & Trading Ltd.'s first liquefied natural gas (LNG) cargo to the United States.

A subsidiary of Russian gas giant Gazprom, Gazprom Marketing & Trading Ltd. and Shell Western LNG BV said the LNG cargo will enter the U.S. market through the Cove Point LNG import terminal, where Shell NA LNG LLC owns a third of the regasification capacity.

The Gazprom cargo will be purchased by Shell and marketed by Shell's North American Trading organization, Coral Energy Holding LP.

"Today's event starts a new era in Gazprom's foreign economic activity. It will go down the pages of history as the beginning of Gazprom LNG sales to the U.S. market," said Alexander Medvedev, deputy chairman of Gazprom Management Board, CEO of Gazexport. "In the near future these sales will be made on a regular basis and, after Gazprom starts its own LNG projects, these sales will be based on the LNG produced in Russia."

Both companies said they will continue to build on this successful cooperation by actively pursuing additional opportunities in order to provide LNG that helps meet growing demand in the U.S. and other major energy markets.

"We are extremely pleased to partner with Gazprom in the delivery of their first cargo of LNG to the United States," said Linda Cook, executive director of Shell Gas & Power. "This deal marks another milestone in the strengthening relationship between Gazprom, the world's largest natural gas company and Shell, the global leader in LNG. It is also evidence of Shell's continued efforts to strengthen security and diversity of supply to the U.S, the world's largest natural gas market."

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