Why Gazprom is halting Arctic gas field development

Shareholders of Russia's gas giant Gazprom gather at the world biggest gas company's annual meeting in Moscow.

One of the most fought-over energy frontiers these days is beneath the icy waters of the Arctic. Ice is melting faster making it easier to extract oil and gas.

So it might come as a surprise that the Russian state-owned gas company Gazprom said this week it is halting development of a giant natural gas field in the Arctic.

Reporter Peter Van Dyk says the project is on hold because Gazprom has not yet come to an agreement with its two main foreign partners, partly because the price of gas has fallen. Indeed, the U.S. has become an exporter of natural gas, driving down demand for gas from the Arctic.

There are still other projects that are going forward. "There's certainly no chance that Russia's going to give up any claims to the Arctic, because it does see it as an important area to develope for the future," Van Dyk says.

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