Sakhalin Energy to produce LNG in next few weeks


OAO Gazprom’s Sakhalin Energy venture has now begun year-round oil exports and following construction of pipelines to the southern tip of the Pacific island, plans to start producing LNG in ‘the next few weeks’.

The $22bn project had been slated to begin year-round oil exports in 2007 and LNG exports in the second half of 2008.

Much of the LNG will be exported to Japan, as the world’s biggest buyer of the fuel.

Royal Dutch Shell Plc, Europe’s biggest oil producer, agreed to cede control of Sakhalin-2 to Gazprom two years ago after months of pressure from environmental regulators, who threatened to shut down the project.

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