RusEnergy

MADRID/MOSCOW. Feb 26 (Interfax) - Spanish oil and gas company Repsol YPF, one of the biggest players on the liquefied natural gas (LNG) market, is planning to take part in a Gazprom (RTS: GAZP) project to build a liquefied natural gas (LNG) plant in Primorye, Repsol said in a report. "In February, a memorandum of agreement was signed with the Russian state-owned company, Gazprom, to develop joint ventures in liquefied natural gas. Under this MOU, Repsol YPF will participate in the "Baltic LNG" project for the construction of an LNG plant in St. Petersburg, producing gas for the American and European markets. Apart from its experience in the LNG business, Repsol YPF contributes in this venture with its regasification capacity, excellent position on the Atlantic markets, and in particular its major role in the Spanish market," the report says. Cooperation with Repsol in the LNG sector would be very beneficial for Gazprom from the point of view of logistical supplies of LNG, a source in a Russian company told Interfax. Repsol currently supplies LNG to Spain from Caribbean countries. If Gazprom could organize its own LNG deliveries to Spain, then favorable swap deals could be organized for Repsol gas on the North American markets from the Caribbean, the source said. Interfax was not able to get any comments from Repsol because of the weekend.