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The parties to the project have been arguing for years whether they should sell gas from Sakhalin-1 to Gazprom or export it on their own to the Asia-Pacific Region.
Gazprom suggests that the gas from Saklhalin-1, where the company is the principal shareholder, to a Sakhalin-2 liquefaction plant (Russia’s first LNG project) as there is not enough gas on the peninsula to keep both projects running and there are plans to build another liquefying facility under Sakhalin-2.Rosneft opposes this proposal and offers its own project with ExxonMobil, Dalnevostochny LNG, a second LNG plant in Sakhalin. ExxonMobil did not withdraw from the talks on participation in project which is expected to be incorporated into Sakhalin-1.
Sakhalin-1 participants are ExxonMobil (30%), Japanese Sodeco (30%), Rosneft (20%), and Indian ONGC (20%).