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Gazprom and Shell Sign for Third Train at Sakhalin II

By The Maritime Executive 02-23-2014 05:44:00

Sochi hosted today the signing of a memorandum-roadmap between Alexey Miller, chairman of the Gazprom Management Committee and Ben van Beurden, CEO of Shell.

The document envisages the preparation of FEED documentation for the third LNG production train within the Sakhalin II project.

“The global LNG market is booming – primarily in Asian countries. Novel LNG production capacities are the key to achieving a strong position in this market,” said Miller.

“We welcome the sequential approach of our strategic partner Gazprom to expanding the LNG plant in the Prigorodnoye settlement. The third train will help confirm the status of the Sakhalin II project as a reliable energy supplier to the Asia-Pacific region,” said van Beurden.

Sakhalin Energy is the Sakhalin II project operator. The company is owned by Gazprom (50 per cent plus one share), Shell (27.5 per cent minus one share), Mitsui & Co. (12.5 per cent) and Mitsubishi Corporation (10 per cent).

As part of the project, Russia's first LNG plant was commissioned in early 2009 and consumers abroad started receiving LNG from Russia. In 2010 the plant reached its full capacity of 9.6 million tons per annum. A total of 10.8 million tons of LNG and 5.4 million tons of oil were produced within the Sakhalin II project in 2013.