Gazprom wants Japan to co-fund gas pipeline

MOSCOW, Sept 1 (Reuters) - Russia's gas export monopoly Gazprom (GAZP.MM) is talking to Japan about co-funding a major gas link in Russia's Far East to bring gas to a liquefaction plant targeting Asian markets, Gazprom said on Tuesday.

"We can confirm talks about financing but won't disclose details," Gazprom's spokesman Sergei Kupriyanov told Reuters.

The comment came after Kommersant newspaper reported on Tuesday Russia had asked Japan to lend $1 billion for the project and Japan has instead offered to provide $2 billion on condition the money would be spent on Japanese pipes.

The 1,350 km (839 miles) pipeline, which will run from Russia's Sakhalin island to the Pacific port of Vladivostok, is expected to cost around 210 billion roubles ($6.60 billion).

The pipeline and the liquefaction plant should be operational by the end of 2011.

Gazprom, which is already exporting liquefied gas from Sakhalin, has said it would increase the share of LNG in its shipments to conquer the Asian markets in addition to its large share in pipeline exports to Europe. (Reporting by Anton Doroshev, editing by Anthony Barker)