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Russia’s Sakhalin-2 owners to decide on LNG plant investment by 2016

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Sakhalin region might produce up to 42 billion cu m of natural gas per year by 2020

MOSCOW, June 17. /ITAR-TASS/. The shareholders of Sakhalin-2, Russian oil, gas and liquefied natural gas (LNG) project, will make the final investment decision for the third stage of an LNG plant construction until 2016, Alexander Medvedev, deputy CEO of the largest shareholder Gazprom, said Tuesday.

“We may make the final investment decision in 2015, by the end of the year. And there will be four years of construction - it will be finished by the 2019-2020,” Medvedev said.

Gazprom holds 50% in the operator of the project, called Sakhalin Energy. Royal Dutch Shell owns 27.5%, while Japan’s Mitsui and Mitsubishi hold 12.5% and 10.0%, respectively, in the operator of the project that entails the development of the Piltun-Astokhskoye and Lunskoye fields on the shelf of Sakhalin Island in Russia’s Far East.

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