Rosneft, Exxon to Proceed with Sakhalin LNG Project

Rosneft announced late Wednesday that it has agreed with its partner ExxonMobil to progress a proposed LNG project on Sakhalin Island in the Russian Far East. Rosneft said that the contractor selection process for design and engineering work has also officially begun.

For the remainder of this year and 2014 the two firms plan to complete design work, including selection of a liquefaction technology and identification of major equipment requirements, as well as perform engineering surveys, develop front-end engineering and design (FEED) for the LNG plant, hydro-technical marine facilities and a source gas pipeline. An environmental impact assessment will also be completed.

The project will use a team of experts from both companies.

Rosneft President Igor Sechin commented in a company statement:

"Rosneft's offshore license areas hold massive hydrocarbon resource potential, most of which is natural gas. Given the fact that offshore fields are difficult to reach and are not connected to the national gas supply system, the most efficient way to monetize these resources is to liquefy the natural gas and sell the LNG in export markets.

"We are optimistic about prospects for LNG export liberalization in Russia in the near term and are pleased to announce that we have entered an important stage of the LNG project jointly with our strategic partner ExxonMobil."

Rosneft said the capacity of the Sakhalin LNG plant is expected to be five million tons per year, subject to further expansion. The liquefaction plant, which is scheduled for 2018, will receive natural gas from Rosneft's reserves in the Far East and other Sakhalin gas reserves.

Have a news tip? Share it with Rigzone!


Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  Muhibbah Says Malaysia's Ophir Field W... (Nov 30)
 -  Edvard Grieg Field Begins Production (Nov 30)
 -  Sterling Completes Mauritania Block C-... (Nov 30)
 -  NPD Grants Lundin Drilling Permit for ... (Nov 30)
 -  Oil & Gas UK Appoints New Board Member... (Nov 30)

Most Popular Articles

From the Career Center
Jobs that may interest you
Level II Rope Access NDT Technician
Expertise: NDT Technician
Location: Houston, TX
Asset Optimizer
Expertise: Chemical Engineering
Location: Houston, TX
Mechanical Engineer
Expertise: Mechanical Engineering|Process Engineer|Structural Engineering
Location: Houston
search for more jobs

Brent Crude Oil : $44.61/BBL 3.37%
Light Crude Oil : $41.65/BBL 3.22%
Natural Gas : $2.235/MMBtu 1.13%
Updated in last 24 hours