Rosneft is to go ahead with plans for a massive liquefied natural gas project in the Russian far east.
The $15billion Sakhalin project would see the Russian oil giant and partner ExxonMobil developing a plant and pipeline to target the Asian market.
The companies have agreed a timescale to progress the project, Rosneft confirmed today, with the hunt now on for a contractor for design and engineering work.
“Rosneft’s offshore license areas hold massive hydrocarbon resource potential, most of which is natural gas,” said Rosneft president Igor Sechin.
“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.”
The Russian energy giant said the partnership aimed to complete design work, perform engineering surveys and environmental impact assessments for the project over the next year as the companies look to minimize impact on the Sakhalin Island ecosystem.
The new facility, when completed, would be able to receive up to 5million tons per year, with launch of the liquefaction plant scheduled for 2018.
