* Minister welcomes LNG exports to markets without Gazprompiped supply
* Novatek has signed its first European LNG deal with Spain
* Novatek, Rosneft expected to be allowed to export from2014
* Russia liberalising LNG exports, targets bigger marketshare
By Katya Golubkova
NEMCHINOVO, Russia, Nov 1 (Reuters) - As more Russiancompanies begin exporting liquefied natural gas (LNG) therewould be no point in them targeting markets where Gazprom's exports gas by pipeline, Energy Minister AlexanderNovak said on Friday.
The government this week backed a plan to allow companiesother than Gazprom to export LNG and President Vladimir Putin isexpected to sign it into law by January 1, 2014.
Novatek, whose co-owner Gennady Timchenko pushedfor liberalising LNG exports, on Thursday signed a deal to sell2.5 million tonnes annually to Spain beginning in 2016.
The move surprised some analysts who expected Novatek andRosneft to focus on Asia instead of Europe, wherepiped gas from Gazprom accounts for a quarter of the market.
"There is no point to compete with Gazprom's pipeline gas(but) in Spain, there is no such gas," Novak said. "We seenothing dangerous if our companies enter such markets."
"There is nothing about the markets in the law, the law onlydetermines the criteria for licence holders who are eligible toexport gas," he said.
Under Russia's draft proposal, companies that hold licencesto build LNG plants would be allowed to export or to send gasfor liquefaction to a plant determined by the government.
It proposes allowing LNG exports by companies with stateholdings of at least 50 percent - if they send LNG abroad fromoffshore fields or from production-sharing agreements.
Russia currently has just one LNG plant, on the PacificIsland of Sakhalin, with an annual capacity of 10 milliontonnes. It is operated by Gazprom, Royal Dutch Shell,and Japanese companies Mitsui & Co. and MitsubishiCorp..
Novatek, Russia's No.2 gas producer, is building aliquefaction plant in the Arctic with France's Total and China's CNPC which is expected to come on stream by 2017.
Rosneft plans its own plant on Sakhalin with U.S. companyExxonMobil.
Gazprom is the world's largest gas producer, but new finds,production of shale gas and the shipping of super-cooled LNGthreatens to bolster competition from the United States,Australia, Qatar and elsewhere.
The company plans to set up a new LNG plant in Russia's FarEast and has considered Baltic LNG to target European markets.
Russia aims to double its market share in LNG to 10 percentby 2020, producing 35-40 million tonnes annually.
