Russian gas company Gazprom is considering a possible swaps arrangement with Australian energy companies for international sales of liquefied natural gas, Australian publication AdelaideNow has reported.

<p>AdelaideNow quoted Gazprom deputy chairman Alexander Medvedev as saying that gas swaps were an area of potential co-operation between Gazprom and leading unnamed Australian energy producers.<br /><br />A swaps arrangement would allow Gazprom and the Australian utilities in question to supply each other&#0039;s customers when necessary, for example, when supplies are disrupted.<br /><br />The deal appears to be a strategic move as, according to AdelaideNow, Australia and Russia are potential rivals due to the fact that they both supply liquefied natural gas (LNG) to key Asian markets.<br /><br />The publication reported Mr Medvedev as saying: The potential for co-operation lies in the very simple fact, which is the globalization of the LNG market as a consequence of more global trends in the overall gas market. However, Mr Medvedev did not say whether the deal would use LNG from Australia. <br /><br />We haven&#0039;t completed any projects with Australian companies, but we have common interests in order to optimize our resource base and to optimize our trade flows, Mr Medvedev added.<br /><br />Mr Medvedev also confirmed that Gazprom was in talks with Korean gas company Kogas regarding Gazprom&#0039;s supply of additional LNG from the new Sakhalin-2 gas field.</p>