Far East LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Far East LNG Terminal (Russian: Дальневосточный СПГ), also known as Sakhalin I LNG Terminal (Russian: Сахалин-1), is a liquefied natural gas (LNG) export terminal proposed in Russia.[1][2]

Location

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Project details

  • Operator: Sakhalin-1 LLC[3][4]
  • Owner: JSC Sakhalinmorneftegaz-Shelf [11.5%], JSC RN-Astra [8.5%], SODECO [30%], ONGC [20%][5]
  • Parent company: Rosneft [20%], SODECO [30%], ONGC [20%][5]
  • Location: De Kastri, Khobarovsk Krai, Russia[6]
  • Coordinates: 51.473482, 140.777540 (approximate)[6]
  • Capacity: 6.2 mtpa, 0.89 bcfd[7][6]
  • Status: Proposed[8]
  • Type: Export[9]
  • Start year: 2027[10]
  • Cost: US$ 4.2 billion[11]

Expansion projects

  • Operator: Sakhalin-1 LLC[3][4]
  • Owner: JSC Sakhalinmorneftegaz-Shelf [11.5%], JSC RN-Astra [8.5%], SODECO [30%], ONGC [20%][5]
  • Parent company: Rosneft [20%], SODECO [30%], ONGC [20%][5]
  • Location: De Kastri, Khobarovsk Krai, Russia[6]
  • Coordinates: 51.473482, 140.777540 (approximate)[6]
  • Capacity: 10 mtpa[10][12]
  • Status: Proposed[8]
  • Type: Export[10]
  • Start year: 2035[10]

Background

The Sakhalin-I consortium, consisting of ExxonMobil's subsidiary Exxon Neftegas (30%), Sakhalinmorneftegas-Shelf (11.5%), RN-Astra (8.5%), ONGC Videsh (20%), proposed an LNG project in De Kastri in Khabarovsk Krai in 2018.[13][14][15] The plans included an engineering design contract in the spring of 2020, a final investment decision in 2021, and begin production in 2027.[15]

In 2021, Rosneft told the government that it may add 10 mtpa of LNG capacity to its plans for the Far East Terminal. It's unclear how many trains will be added for the newly proposed capacity. The new train, or trains, in De-Kastri are unlikely to become operational before 2035.[10]

In March 2022, in response to Russia's invasion of Ukraine, Exxon announced that it would withdraw from all of its oil and gas operations in Russia[16], potentially dealing a fatal blow to the Far East LNG Terminal project.[17][18] Exxon left the Sakhalin-I Consortium, freezing the project.[19] Russia appointed a new operator for Sakhalin-I consortium, Sakhalin-1 LLC, with the same member list except Exxon. It's unclear whether Exxon's share would be transferred to another company.

In February 2024, Deputy Prime Minister of Russia A. Novak stated that the project is still expected to go ahead and is crucial for increasing production in the Sakhalin LNG cluster.[8]

Articles and resources

References

  1. "ExxonMobil заморозила проект "Дальневосточного СПГ"". Interfax.ru (in русский). 2022-04-04. Retrieved 2023-06-29.
  2. "ExxonMobil suspends Russian Far East LNG project, Interfax reports". Reuters. Retrieved 2023-06-29.
  3. 3.0 3.1 "Новый оператор "Сахалина-1" будет зарегистрирован в Южно-Сахалинске". Interfax.ru (in русский). 2022-10-13. Retrieved 2023-06-29.
  4. 4.0 4.1 "Russia appoints new operator for Sakhalin 1". Upstream Online | Latest oil and gas news. 2022-10-17. Retrieved 2023-06-29.
  5. 5.0 5.1 5.2 5.3 "Exxon Mobil сократила списание по проекту "Сахалин-1" c $3,4 млрд до $2,3 млрд". Interfax.ru (in русский). 2023-01-31. Retrieved 2023-06-29.
  6. 6.0 6.1 6.2 6.3 6.4 "Дальневосточный СПГ. Заключен контракт на предварительное проектирование СПГ-завода" (in русский). Retrieved 2023-06-29.
  7. Exxon Mobil and Rosneft will build LNG plant in the Far East LNG Russia Congress, accessed April 2021
  8. 8.0 8.1 8.2 "Планы по строительству СПГ-завода в рамках "Сахалина-1" сохраняются". Interfax.ru. Feb 20, 2024. Retrieved May 6, 2024.{{cite web}}: CS1 maint: url-status (link)
  9. Putin invites India to participate in implementation of LNG projects in Russia, TASS, September 4, 2019
  10. 10.0 10.1 10.2 10.3 10.4 Vladimir Afanasiev, Gazprom and Rosneft shed light on Russian LNG export ambitions, Upstream Online, March 25, 2021
  11. "ExxonMobil заморозила проект "Дальневосточного СПГ"". Interfax.ru (in русский). 2022-04-04. Retrieved 2023-06-29.
  12. "24.03.2021. Мощность «Дальневосточного СПГ» может вырасти до 16,2 млн тонн — Бизнес-газета «Наш регион — Дальний Восток»". biznes-gazeta.ru (in русский). Retrieved 2023-06-29.
  13. Exxon, Rosneft To Partner on LNG Plant in Russia’s Far East, Society of Petroleum Engineers, Oct. 26, 2018
  14. "Rosneft CEO says Sakhalin-1 to build its own LNG plant in Russia's De Kastri port," Reuters, September 5, 2019
  15. 15.0 15.1 Ryosuke Hanafusar, "Japan and Russia set to launch $9bn LNG project in Far East," Nikkei Asia Review, December 20, 2019
  16. "ExxonMobil to discontinue operations at Sakhalin-1, make no new investments in Russia". ExxonMobil. Retrieved 2022-06-28.
  17. "Exxon to exit Russia, leaving $4 bln in assets". Reuters. March 2, 2022.{{cite web}}: CS1 maint: url-status (link)
  18. "Can Russia Execute a Gas Pivot to Asia?". CSIS (Center for Strategic & International Studies). May 4, 2022.{{cite web}}: CS1 maint: url-status (link)
  19. "ExxonMobil suspends Russian Far East LNG project, Interfax reports". Reuters. Retrieved 2023-06-29.