Rosneft CEO Says Sakhalin-1 to Build its Own LNG Plant

Source Reuters
Company RosneftExxonMobilGazprom PJSCInpex CorporationItochuJapan Petroleum Exploration Co., Ltd.Marubeni CorporationONGC 
Tags LNG & Gas Storage/Processing
Date September 05, 2019

(Reuters) Shareholders in the Sakhalin-1 oil and gas project in Russia’s far east have decided to build their own liquefied natural gas (LNG) plant in the Pacific port of De Kastri, which could supply the super-cooled gas to Japan, Rosneft’s chief executive said.

The four companies - RosneftExxon, Japan’s SODECO and India’s ONGC Videsh - are partners in the Sakhalin-1 group of fields. The partners were considering whether to build their own LNG plant or to sell gas to Gazprom.

Gazprom, Russia’s top gas company, leads another project on the Pacific island of Sakhalin, Sakhalin-2, and is planning to expand its production capacity from the current 10 million tonnes of LNG per year.

Gazprom was in talks with the Sakhalin-1 shareholders about buying gas from that project for the Sakhalin-2 expansion but the parties have so far failed to agree on the selling price.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd