Gazprom warns Canada over Rabaska LNG project

MOSCOW (Reuters) - Gazprom (GAZP.MM) warned Canada that Russia could easily find an alternative market for its liquefied natural gas (LNG) if the Canadian authorities try to hinder a deal over the Rabaska LNG project.

Canadian Prime Minister Stephen Harper said last month commercial natural gas deals with Russia could be put at risk because of Russia's military action in Georgia.

Gazprom Deputy CEO Alexander Medvedev told the 2008 Reuters Russia Investment Summit on Monday those comments had surprised Gazprom.

"We have been surprised by the statement of the Canadian Prime Minister that Canada will reconsider the Rabaska project," Medvedev said.

In May, Gazprom said it was joining Enbridge Inc (ENB.TO), Gaz Metro (GZM_u.TO) and Gaz de France GAZ.PA in developing an C$840 million LNG project in Quebec.

"If there is a nightmare scenario that for some reason this project will be out of reach of realization based on a Canadian political decision, then for us it will be easy to find an alternative destination for our LNG," Medvedev said.

"But it will not be good for Canada because they will face a shortage of natural gas."

The project would involve Gazprom taking a unspecified stake in the Rabaska LNG terminal on the St. Lawrence River at Levis, across from Quebec City.

Medvedev said Rabaska's management had assured Gazprom the Canadian Prime Minister's statement would not hinder the finalization of the project.

"We are happy Rabaska management do not think this statement is a barrier for finalizing the transaction with Gazprom," Medvedev said.

The 500 million cubic feet of gas a day from the plant would supply the Quebec and Ontario markets.

The project is scheduled to go ahead in 2014, coinciding with the planned start of a liquefaction plant at Russia's Shtokman natural gas field, located in the Barents Sea.

(Reporting by Guy Faulconbridge, Yekaterina Golubkova, Dmitry Zhdannikov, Anastasia Onegina and Tatiana Mosolova; Editing by David Holmes)