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    Gazprom, Mitsui Discuss Sakhalin LNG

Summary

Gazprom and Japan's Mitsui agreed to co-operate further on the Sakhalin LNG project - but their talks fell short of any investment commitment.

by: William Powell

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Natural Gas News, Europe, Corporate, Infrastructure, LNG, News By Country, Russia

Gazprom, Mitsui Discuss Sakhalin LNG

Russian gas giant Gazprom and Japanese conglomerate Mitsui agreed September 12 to co-operate further on the Sakhalin LNG project, agreeing to a 'possible' third train. Meeting at the fourth eastern economic forum in Russia's far eastern port of Vladivostok, they discussed the performance of the project to date.

They also signed a memorandum of understanding on the still-unbuilt Baltic LNG project, which it website describes as a 10mn mt/yr liquefaction terminal. It would be able to export LNG to markets beyond the reach of its export pipelines and observers expect it also to offer bunkering services to the busy Baltic shipping market.

Gazprom has already signed agreements with Anglo-Dutch Shell  to study both projects: so far no investment decision has been taken to expand Sakhalin Energy, in which Mitsui is also a shareholder, by adding a third train - despite Shell saying in June 2017 that front-end engineering (Feed) stage of train 3 project preparation was “nearly completed.”

Work to revamp Sakhalin's two existing liquefaction trains was awarded to Petrofac a year ago.

Gazprom was a relatively late entrant to the Sakhalin Energy LNG plant, taking 50% equity plus one share, and consequently halving the other participants' equity. Shell now has 27.5% minus one share; Mitsui 12.5% and Mitsubishi 10%. (Banner image of Sakhalin Energy's jetty, with tanker moored, is courtesy of the company)