Gazprom Courts Alaska as Palin Warns Against Russian Aggression

By Lucian Kim and Tony Hopfinger

Oct. 14 (Bloomberg) -- OAO Gazprom, Russia's biggest energy company, offered to help Alaska increase natural-gas supplies to the U.S. mainland, even after Governor Sarah Palin warned against Russia's resurgence while campaigning for vice president.

State-run Gazprom sent eight senior executives to Anchorage for talks yesterday with Alaska's Department of Natural Resources and ConocoPhillips Chief Executive Officer Jim Mulva, state and company officials said.

Gazprom, which already supplies a quarter of Europe's natural gas, is seeking to increase its reach with projects around the world, including in North America. The courtship of Alaska comes less than a month after Palin criticized Prime Minister Vladimir Putin for ``rearing his head'' over Russia's maritime border with her home state.

``The timing is as interesting as the visit itself,'' said Chris Weafer, chief strategist at UralSib Financial Corp. in Moscow. ``Gazprom's entire senior management goes into Sarah Palin's backyard during a contentious election. There's a message there.''

Gazprom CEO Alexei Miller was accompanied by deputies Valery Golubev, who served alongside Putin in the Soviet-era KGB, and Alexander Medvedev, who oversees Russia's gas exports. A working breakfast was held with Palin supporter and former Alaska Governor Walter Hickel, according to Gazprom.

Palin has said she favors North Atlantic Treaty Organization membership for the former Soviet republics of Ukraine and Georgia, even though that might commit the U.S. to a war with Russia under the military alliance's mutual defense pact. Russia fought a five- day war with Georgia in August, an action condemned by Palin and John McCain, the Republican candidate for president.

Palin is the running mate of McCain, who is running for president against Democrat Barack Obama and his vice presidential candidate Joe Biden.

BP, TransCanada

Miller said in June that Gazprom had approached ConocoPhillips and BP Plc on joining their Denali pipeline project, designed to deliver Alaskan gas to the continental U.S. At the same time Gazprom expressed interest in a rival pipeline project backed by Canada's TransCanada Corp.

``The working conditions in Gazprom's traditional areas of production practically coincide with those in Alaska,'' the Russian company said. ``Gazprom's experience will be in demand when similar projects are developed in Alaska.''

Moscow-based Gazprom didn't specifically discuss pipeline projects during the meeting with Alaskan officials, Marty Rutherford, deputy commissioner of the state's Department of Natural Resources, said by phone. ``They were talking very generically. They would love to partner with us and other firms,'' she said.

Talks with Houston-based Conoco focused on ``broad-based business opportunities,'' ConocoPhillips spokesman Charlie Rowton said. ConocoPhillips, the third-largest U.S. oil company, owns 20 percent of OAO Lukoil, Russia's biggest independent oil producer.

To contact the reporters on this story: Lucian Kim in Moscow at lkim3@bloomberg.net; Tony Hopfinger in Anchorage at thopfinger@gci.net