* Rosneft, Gazprom trade barbs over LNG projects
* Novatek's Timchenko challenges Rosneft-Enel deal
* Rivals balk at Sechin's gas ambitions
By Denis Pinchuk and Vladimir Soldatkin
YUZHNO-SAKHALINSK, Russia/MOSCOW, Sept 25 (Reuters) -R ivalry between Russia's two state energy majors broke out intothe open on Wednesday as gas export monopoly Gazprom denounced a push by oil company Rosneft into its corebusiness.
Gazprom, the former Soviet gas ministry, has yet to finalisea deal to supply China by pipeline after years of talks and isnow under pressure as Rosneft eyes the Asia-Pacific market forliquefied natural gas (LNG).
In a further signal of CEO Igor Sechin's intent, Rosneft hasannounced its purchase of an independent Russian gas producerfrom Italy's Enel, triggering a rival bid from energytrader Gennady Timchenko.
The contest for gas resources and markets has come to a headas the government reviews a proposal to lift partially Gazprom'sexport monopoly, enshrined in a 2006 law, for tanker-shipped LNGfrom the start of next year.
Analysts said the ructions indicated that Sechin's expansivestrategy was upsetting an equilibrium in the state-capitalistestablishment that President Vladimir Putin has nurtured throughhis 13-year-old rule.
"After he moved from the government to Rosneft, Sechin wadedinto conflict with everyone," said Sergei Zhavoronkov of theGaidar Institute, a Moscow-based think tank.
"Putin used to keep a fine balance between differentplayers. He can hardly allow Sechin's influence and ambitions togrow without control."
Konstantin Simonov, director of the National Energy SecurityFund in Moscow, said Sechin's rivals believe he is "behaving tooaggressively, and it's time to stop him".
"I don't rule out that Putin may have an open ear for thisopinion," Simonov added.
"SUPERFLUOUS" PROJECT
Gazprom voiced strong opposition to plans by Rosneft andExxon to build a $15 billion LNG plant to ship gasproduced at their offshore Sakhalin-1 project, strategicallysited near Japan.
Viktor Timoshilov, head of Gazprom's Oriental ProjectsCoordination Directorate, said the company was ready to continuetalks with Exxon about gas purchases from Sakhalin-1.
"We think the project is superfluous ... They don't have tobuild the plant, the infrastructure is already in place,"Timoshilov told reporters at an energy conference inYuzhno-Sakhalinsk, capital of the island off Russia's Pacificcoast.
Gazprom has its own LNG plant - the 10 million tonnes peryear Sakhalin-2 project built by Shell - in which itacquired a controlling stake several years ago.
The prospect of an end to Gazprom's export monopoly hasinjected urgency into its long-running talks with China tosupply pipeline gas, with a top executive signaling flexibilityon price in an interview with Reuters.
Sechin, a long-time aide to Putin, masterminded theconstruction of an eastbound oil export pipeline that has openedthe Chinese and Asia-Pacific markets for Rosneft.
Since taking the helm at Rosneft in May 2012, he has alsoacquired a large-scale gas business through the $55 billionacquisition of Anglo-Russian oil venture TNK-BP.
His acquisitive appetite faces a challenge from Timchenko,who is also an acquaintance of Putin and is a shareholder inNovatek, which is building its own LNG project on theYamal Peninsula north of the Arctic Circle.
Novatek has partnered with France's Total andChina's CNPC on the $20 billion Yamal LNG project,due to enter production in 2016-2017.
Rosneft on Tuesday agreed to buy Enel's 40 percent stake inArctic Russia B.V., giving it indirect ownership of a 19.6percent holding in SeverEnergia, of which 51 percent is owned bya joint venture between Gazprom Neft and Novatek.
But Timchenko said Novatek and Gazprom Neft were in theirown talks on the stake, opening a new front in a conflict withSechin. Timchenko's oil trading firm Gunvor has lost out inrecent years in tenders to buy Rosneft crude.
"Based on what I saw in Rosneft's statement, there are somesuspensive conditions," Timchenko was quoted as saying by Primenews agency, indicating that the Rosneft gas deal was notwatertight. Rosneft said the agreement was legally binding.
Rosneft said later on Wednesday it had signed a long-termagreement to supply gas to Enel's Russian power plants.
Italy's Eni also has an indirect stake inSeverEnergia, a production venture with assets in theYamal-Nenets Autonomous Region in northern Russia.
