PORT PRIGORODNOE /Sakhalin Region/, July 20. /TASS/. Sakhalin-2 shareholders are considering several options to expand the resource base of the project, the potential of the current one is limited to 2033-2035, Sakhalin Energy CEO Roman Dashkov told reporters.
Sakhalin Energy is the project’s operator.
"We are considering a number of areas where we are not users of mineral resources, but we are looking for ways of cooperation for their best use," he said, answering the question whether the project shareholders are studying the use of the Sakhalin-3 resource base as the main one for the development of the project.
Dashkov estimated the potential for using the current resource base until 2033-2035.
"I would not raise the question that there is any strict time frame [on the expansion of the third line]. We strive to synchronize our actions with other subsoil users by the period when our production begins to decline. In accordance with the development project, at about 2030, we will approach the beginning of a decline in production based on the natural depletion of our fields," the top manager said.
Initially, it was planned to expand the LNG plant's capacities through the construction of a third and even a fourth line. The fields of the Sakhalin-3 project, which includes the Kirinskoye, Yuzhno-Kirinskoye, Lunskoye and Mynginskoye fields were considered as the raw material base. In 2015, the Yuzhno-Kirinskoye field, the largest one, fell under US sectoral sanctions in 2015. Also, the resources of the Sakhalin-1 project were considered as an option to fill the capacities of the Sakhalin-2 project.
"All options are in the portfolio of potential opportunities. The only question is whether our counterparties are ready to sit down at the negotiating table. We always take them into account. At any opportunity to resume negotiations, we are ready to participate in them," he said, answering the question is whether the potential of the Sakhalin-1 project to expand the resource base is still being considered.
Dashkov added that "the company has a strong ambition" to implement the project for the construction of the third stage of the LNG plant. Even a land plot has already been allocated for these capacities.
After the introduction of the third technological line, the plant will be able to process more than 25 billion cubic meters of gas per year, which is equal to about 16 million tonnes of LNG per year, Dashkov said.
"We expect that we would be able to produce 15-16 million tonnes here in terms of personnel potential, qualifications, and demand," he said when asked about the planned capacity of the plant, taking into account the third line.
The Sakhalin-1 project is also being implemented under a production sharing agreement. Exxon Neftegas Ltd acts as the operator of the project with a 30% stake, Rosneft holds 20%, Japanese Sodeco - 30% and Indian ONGC — 20%.
The discussion on ways to monetize gas from the Sakhalin-1 project, including by sending it to the third stage of the LNG plant under the Sakhalin-2 project, has been going on since 2015. Earlier, Rosneft CEO Igor Sechin said that the shareholders of the Sakhalin-1 project had decided to build their own LNG plant in De-Kastri in the Far East.
Sakhalin-2 is the first liquefied natural gas plant in Russia. It was launched in 2009, and a year later reached its full capacity — 9.6 mln tonnes of LNG per year. In the future, due to optimization of work, the company was able to further increase output, which made it possible to produce 11.6 mln tonnes of LNG in 2020.
The operator of the project is Sakhalin Energy, in which Gazprom owns 50% plus one share, Shell — 27.5% minus one share, Mitsui & Co. Ltd — 12.5%, Mitsubishi Corporation — 10%.