* Trump has threatened to sanction gas export project
* Energy industry leaders gathered in Moscow
* Say world needs Russian gas supplies
* Message voiced by Saudi oil minister, Total and Shell CEOs
By Dmitry Zhdannikov and Denis Pinchuk
MOSCOW, Oct 3 (Reuters) - Global energy bosses assembled inMoscow on Wednesday said the world needed Russian gas to keepthe lights on, in a clear message to U.S. President Donald Trumpwho has warned he may impose sanctions on Russian gas exportprojects.
Trump's administration, citing what it calls Russia'sfailure to act as a good global citizen, has said it may takesteps to block the Nord Stream 2 gas pipeline, which willincrease the volumes Russia can export to northern Europe.
The U.S. position has prompted a backlash from the Kremlin,and from business groups in Germany, and on Wednesday leadingfigures in the global energy industry attending a forum in theRussian capital joined the chorus.
While not explicitly singling out Trump's policies forcriticism, they said Russian gas was a vital part of the energymix and that liquefied natural gas, touted by Washington as aviable alternative, was too expensive.
Royal Dutch Shell CEO Ben van Beurden said if theU.S. imposes sanctions on export projects, his company will haveno choice but to abide by those restrictions.
But he added: "It's clear that Europe will need moreimports, indigenous production in Europe is in decline, we willneed to import in Europe from multiplicity of sources."
"Russia has been a very reliable supplier of gas for manydecades ... The cost of supply of Russian gas is probably one ofthe most competitive," he said at the forum.
Patrick Pouyanne, chief executive of French oil major Total, said LNG produced at Russia's Yamal project washighly competitive, with more competitive projects still tocome.
"I think it’s just only (the) start of the story and thiswill be one of the largest provinces for natural gas in theworld."
SAUDI PRAISE
Both Shell and Total have a vested interest in keepingRussian gas flowing to world markets. Shell is an investor withRussia's Gazprom in the Sakhalin-2 LNG project off Russia'sPacific coast, while Total is an investor in the Yamal project.
Saudi Arabia is Russia's rival on the global oil market, butSaudi Energy Minister Khalid al-Falih, who was also at theenergy forum, said the world needed Russian gas.
He said national energy firm Saudi Aramco wanted to beinvolved in delivering Russian LNG to world markets, includingto Saudi Arabia.
"There are great resources, great conditions (in Russia) andthe market forces here in Russia are very conducive toglobalisation and to allowing this competitive healthy processof bringing the cheapest resources to the markets,” he said.
The Trump administration has sought to sanction Russianexport pipelines before, but stayed its hand after intenselobbying from the European Union (EU) and business groups. Butthe issue has returned to Washington's agenda this year.
Russian President Vladimir Putin told the forum that Russiangas exports to the EU would this year reach a record level of200 billion cubic metres.
He said that LNG imports from the United States were 30percent more expensive than Russian gas, and that the Germaneconomy would be rendered uncompetitive if it had to rely on theU.S. imports.
Referring to the U.S. President's warnings of sanctions,Putin said: "I understand Donald, he's fighting for hiscountry's interests, for his industry, and he's right to dothat."
"But in this case American LNG on the European market ismore expensive, not by a bit but by 30 percent. That's way toomuch."(Additional reporting by Oksana Kobzeva, Olesya Astakhova andVladimir SoldatkinWriting by Christian Lowe;Editing Emelia Sithole-Matarise)
