* For other news from Reuters Russia Investment Summit,click on http://www.reuters.com/summit/Russia15 (Updates with more quotes, context)
By Denis Pinchuk
YUZHNO-SAKHALINSK, Russia, Sept 29 (Reuters) - Russianenergy giant Gazprom is considering building a fourthproduction train for its Sakhalin-2 LNG plant, a joint venturewith Royal Dutch Shell, Alexander Medvedev, thecompany's deputy CEO, said in an interview on Tuesday.
Gazprom and Shell signed a memorandum of strategicpartnership earlier this year, agreeing to commission a thirdproduction train for the Sakhalin plant aimed at expanding itscapacity to 15 million tonnes from 10 million tonnes.
A fourth train would mean that the plant in Russia's fareast -- the country's only LNG-producing unit -- would doubleits current capacity.
"From a technical point of view everything (that is neededfor the fourth production train) is there," said Medvedev, whowas speaking during an interview conducted as part of theReuters Russia Investment Summit.
"The key point to discuss is the gas sourcing issue", hesaid, explaining that Gazprom was in the process of choosingwhether to buy gas from Rosneft-ExxonMobile's nearby jointoffshore field, Sakhalin-1, or to get it from Gazprom's ownYuzhno-Kirinskoye deposit, which is on a U.S. sanctions list.
Separately, Rosneft and Exxon have been consideringlaunching their own LNG project on Sakhalin to liquefy reservesfrom Sakhalin-1. However, Rosneft said this month the plant hadbeen delayed until after 2020.
"If we succeed in buying gas from Sakhalin-1 this solves theresource base issue not just for the two current productiontrains but for the third and fourth trains," Medvedev said.
CHINESE PROSPECTS
Medvedev shrugged off the impact of U.S. and EU sanctionsimposed over Russia's actions in Ukraine which, combined withlow oil prices, have hurt the economy.
Such economic pain would not deter investment, he said,saying Gazprom was still ready to invest in new LNG projects,including in Sakhalin-2 and Baltic LNG, even though oil priceswere languishing at $45-$50 per barrel.
"Even if this period will last for several years it won'taffect our readiness to invest", he said. Latin America, theMiddle East, and South East Asia were potentially interestingmarkets, he added, singling out the Philippines in particular.
Medvedev also cited China, saying he was confident of itsprospects even though its economy was under strain.
"Of course, (Chinese) domestic demand will probably notreach the kind of figures that have been mentioned such as 500bcm per year or more," he said. "But 400 bcm per year and thensome is definitely realistic even if economic growth is low."
Russia announced this month it would construct its third gaspipeline to China from Sakhalin. It has another pipeline underconstruction and another at the design stage.
Medvedev said he saw Yuzhno-Kirinskoye and Kirinskoye as asource base not just for the expansion of Gazprom's LNG plant,but for the pipeline to China from Sakhalin as well.
EU ANTI-TRUST ENQUIRY
Gazprom on Monday said it had filed a reply to EUregulators, who have accused it of abusing its dominant positionin eastern Europe.
Medvedev said on Tuesday that proposal addressed "how toremove the EU's concerns in respect not just to the past, but tothe future as well". He declined to elaborate.
Gazprom, which supplies around a third of Europe's needs,expects the EU's demand for gas to grow this year and next dueto a drop in European production, he said.
"We have overtaken our gas flows (to the EU) last year byaround 100 million or even more cubic meters per day. Thisyear's exports (except CIS countries) will be considerablyhigher then 2014, nearly 160 bcm (from 146 bcm in 2014)."
Earlier this month, Gazprom sold 1.2 billion cubic metres(bcm) of gas via its first spot tender, to be delivered via theNord Stream undersea gas pipeline from Russia to Germany.
Medvedev said Gazprom would conduct more tenders with "newdelivery points, new volumes and a new timetable." He did notsay where and when.
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