Russian Authorities Interested in Second LNG Plant North of Japan

by Ship & Bunker News Team
Monday April 15, 2013

Authorities from Russia said last week they are interested in constructing a second liquefied natural gas (LNG) plant on the Pacific island of Sakhalin just north of Japan, Russian news site IAA Portnews reports.

The comments came as Sakhalin Governor Alexander Khoroshavin met with ExxonMobil Development Company President Neil W. Duffin.

"I know that ExxonMobil and Rosneft have signed a MoU and a working group has been created to study the LNG plant project feasibility in the Far East. Sakhalin is considered as one of the sites. I keep an eye on the issue," said Khoroshavin.

"The regional government is extremely interested in building new regional facilities. For us it is more jobs, better welfare of the locals."

ExxonMobil are currently involved in the Sakhalin-1 project in the area, which includes three oil and gas fields, and is operated by the Russian, Japanese, Indian, and American consortium Exxon Neftegas Limited (ENL), according to the company's website.

Sakhalin Island's existing LNG plant near Prigorodnoye in the south of Sakhalin Island has a capacity of 9.6 million tonnes of LNG a year, and is part of the Sakhalin-2 joint venture between Gazprom, Shell, Mitsui, and Mitsubishi, according to information on Shell's corporate website.