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SHTOKMAN Development, a consortium led by Russia’s Gazprom, has delayed the start-up of the Shtokman gas field in the Barents Sea.

The consortium, 51% owned by Gazprom, alongside Total and Norway’s Statoil,which own 25% and 24% respectively, said in a statement that the delays were due to “changes in the market situation and particularly in the LNG market.”

The Schtokman field, discovered in 1988, is estimated to contain 3.8 trillion m³ of natural gas and 53.3m t of gas condensate. Start-up of the project’s pipeline was due in 2013 but this is now delayed until 2016, pending a final investment decision (FID) in March 2011. A FID will also be taken on liquefied natural gas (LNG) facilities, including a liquefaction plant and a pipeline network, before the end of 2011, with production expected to begin in 2017. This was originally scheduled to begin in 2014.

Gazprom had hoped that Shtokman would enable it to compete in North American LNG markets, however, there has been a global drop in demand for gas due to the recession, not helped by the development of shale gas and new LNG supplies.

The three companies stress that the project remains important and they have a “strong willingness” to pursue it.