LONDON (Dow Jones)

Russian energy giant OAO Gazprom (OGZPY) said Thursday it has dropped its plans to build a $3.5 billion liquefied natural gas plant on the Baltic Sea coast near St. Petersburg.

"After meticulous studies, we decided that compared to our other projects in the region - the Nord Stream pipeline and the possible construction of an LNG facility for the gas of the Shtokman field - the Baltic LNG project is less competitive," Gazprom's spokesman Sergey Kupriayanov said.

He said the company decided to concentrate its resources on the Shtokman and Nord Stream projects.

Earlier, Gazprom said it plans to build by 2013 an LNG plant with 5 million tons capacity with a foreign partner. Previously, Gazprom officials have mentioned Petro-Canada (PCZ), BP PLC (BP), Italy's Eni SpA (E), Japan's Mitsui and Co (MITSY) and Mitsubishi Corp (MSBHY), Spain's Iberdrola SA (IBDRY) and a Malaysian company as possible partners.

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