Norwegian energy group Norsk Hydro appears to have taken a lead in the race to partner Russian gas giant Gazprom in the development of the massive Shtokman field in the Barents Sea. Gazprom chairman Alexey Miller indicated in a meeting with Norsk Hydro's president and chief executive Eivind Reiten that the Norwegian company could be 'one of the most important partners in the Shtokman gas field'.  The two companies have agreed that a work group will draw up a proposal for Norsk Hydro's possible participation in the development. Norsk Hydro's statement made no mention of the major liquefied natural gas project associated with Shtokman. Gazprom is keen to use Shtokman to break into the LNG market and intends to make a decision on a project this year, in order to start deliveries in 2010 or 2011. The US market is Gazprom's main target and, with this in mind, it has been in talks with ExxonMobil, ConocoPhilips, ChevronTexaco, and Shell. A spokesman for Norsk Hydro said it was too early to draw conclusions about any involvement in the LNG project.  In general, he explained, Norsk Hydro would not rule out participation in LNG 'if that comes naturally as part of a major offshore field development'. Norsk Hydro has had limited exposure to the LNG industry through its 10% stake in the Snohvit project, also in the Barents Sea. However, 18 months ago the company sold its Snohvit interest to compatriot Statoil. But Norsk Hydro can boast of 30 years' experience on the Norwegian continental shelf. And Mr Miller emphasised the importance of Norsk Hydro's technological position and experience of offshore production and the transportation of gas from offshore fields. Mr Reiten said Gazprom's interest was spurred 'not least [by] Hydro's technological project expertise from the Ormen Lange field development, which we hope to transfer and expand in the development of Shtokman together with Gazprom'. There was potential for reducing the cost estimate for the development by 30%, he added.  Norsk Hydro said a number of questions still needed to be clarified, such as the progress plan for the development and ownership stakes, before its participation in Shtokman went ahead. The Shtokman gas field, one of the largest in the world, is in the deep water continental shelf on the Russian side of the Barents Sea, around 500 km from Murmansk. It has estimated reserves of 3.2trn cu m of gas but is expected to require a number of technical innovations and solutions, which could push up development costs and make the gas more expensive.  It has been estimated that developing Shtokman LNG would cost a total of around $10bn, including construction of an offshore production platform, an LNG plant, and an export terminal near the ice-free port of Murmansk. Originally, the intention was that Shtokman gas exports would go to Europe by pipeline via the North European Gas Pipeline.