Gazprom backs Sakhalin 2 LNG expansion

Market: Natural gas
01/10/14

Gazprom chief executive Alexei Miller met his Shell counterpart Ben van Beurden on 30 September to discuss expanding the 9.6mn t/yr Sakhalin 2 LNG plant.

The Russian firm is renewing its focus on building a third 5mn t/yr train at Sakhalin 2 because of US sanctions affecting its proposed Vladivostok LNG project. Vladiostok LNG project backers Gazprom and Gazprombank appeared on the US sanction list this year after Russia annexed Crimea from Ukraine. US sanctions may also restrict Russian access to US liquefaction technology, so Gazprom will probably have to rely wholly on Shell's Sakhalin liquefaction process instead.

The meeting took place shortly after Gazprom announced a commercial discovery in Sakhalin 3's South Kirinsky prospect in September. South Kirinsky is a key source of supply for the planned third LNG train. Although the final investment decision (FID) for the Sakhalin 2 expansion is to be taken in the middle of next year, Gazprom has already said it makes sense to expand the project.

The Sakhalin 2 project comprises Gazprom (50pc plus one share), Shell (27.5pc minus one share), and Japanese firms Mitsui (12.5pc) and Mitsubishi (12.5pc).

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08/05/25

US seeks flexibility from Europe to help LNG deals

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HSFO defies the green tide

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News

08/05/25

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