Sakhalin Gov. calls on Japan to back the second LNG plant project in Sakhalin

The shareholders of the "Sakhalin-1" project, the Japanese gas buyers and local authorities should work together to support the project of the second liquefied natural gas (LNG) plant to be implemented in Sakhalin, Sakhalin Governor Alexander Khoroshavin said Thursday at a meeting with major Japanese companies in Tokyo.

Governor Alexander Khoroshavin has met recently with the heads of "Mitsui", "Tokyo Gas" and "Tokyo Electric" at the presentation of the "Sakhalin - Territory of Development" showcase, the regional government website said.

The official said that "Mitsui" had played an important role in the implementation of the major offshore project "Sakhalin-2", creation of the first Russian LNG plant on the island. "Tokyo Gas" and "Tokyo Electric" became the first major buyers of Sakhalin gas.

"The Government of the Russian Federation intends to significantly increase the country's share in world production of LNG. We expect that the Sakhalin region will be able to step up its presence in the gas market of Japan and Asia-Pacific region. We hope that our Japanese partners, including "Mitsui", "Tokyo Gas" and "Tokyo Electric" will also be interested and support us in this issue. When I talk about increasing our presence in the gas market of the Land of the Rising Sun and of the Asia-Pacific region, I mean not only the expansion of the existing LNG plant on Sakhalin Island, but the idea of building yet another LNG plant in the framework of the "Sakhalin-1" project,” the Sakhalin Gov. press service quoted Mr. Khoroshavin as saying.

The new LNG facility could be launched as early as 2018, the official said.

He added that the Sakhalin government would be willing to establish businesses in Sakhalin for deeper conversion of hydrocarbons and coal. Alexander Horoshavin has encouraged Japanese partners to join the projects. During the meeting the parties discussed the project of building ‘an energy bridge’ between Sakhalin and Hokkaido, the issue of Sakhalin coal supplies to Japan for the country’s thermal power stations.