According to Peter Voser, chief executive of Shell, discussions with the government of Russia about the Yamal project in the Siberian Arctic are progressing well. The company also expects that a development plan for the Yamal project would be drawn up by March next year.

Shell has estimated that the reserves, which are situated in the remote Yamal peninsula and Kara Sea in the Russian Arctic, may hold approximately 30 trillion cubic meters of gas. Shell expects to be part of a consortium to develop the project, Mr Voser added. The project is expected to be at least 51% controlled by Russian companies such as Gazprom.

He added that the project in Yamal will require new technologies, such as a ice-breaking liquefied natural gas tankers.