PSA obligations under long-term contracts are being implemented in full
Gas production under Sakhalin 2 project is expected to reach 18.5 billion cbm in 2022 with sales of liquefied natural gas to total 11.4 million tonnes, Sakhalin Governor Valery Limarenko said when opening a plenary session at the 26th Far East Energy Forum “Oil and Gas of Sakhalin”, says press center of the regional government.
According to the speaker, gas production under the project totaled 12 billion cbm in the 8-month period while LNG sales rose by 19%, year-on-year, to 7.6 million tonnes. Valery Limarenko also reminded that new operator of Sakhalin 2 project, Sakhalin Energy LLC, commenced its operation in August 2022. “Production and processing of hydrocarbons is underway in full, PSA obligations are being fully implemented. All the buyers have confirmed their interest in further long-term cooperation.
Sakhalin 2, Russia’s first LNG plant, produces about 11.5 million tonnes per year. The pland is ed by gas from the Piltun-Astokhskoye and Lungskoye fields of the Sakhalin shelf.
Until recently, Sakhalin 2 was operated by Sakhalin Energy Investment Company Ltd. with Gazprom holding 50%, Shell - 27.5% Mitsui – 12.5%, Mitsubishi - 10%
Former shareholders of Sakhalin 2 lost their right for participation in the project in pursuance of the Russian President’s Executive Order On Imposing Special Economic Measures in the Fuel and Energy Sector in Connection with the Unfriendly Actions of Certain Foreign States and International Organisations signed on June 30 (No 416). The new structure, Sakhalin Energy LLC, with authorised capital of RUB 10 thousand was established and registered in Yuzhno-Sakhalinsk. It commenced operation on 19 August 2022.
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