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29 September 2011

Sakhalin Energy plans to increase LNG production

Sakhalin Energy, the operator of one of the world's largest integrated oil and gas projects, Sakhalin-2 plans to increase annual production capacity of liquefied natural gas (LNG) by 1.5% over the coming years. This was announced by CEO Andrey Galaev at the Sakhalin Oil and Gas conference.

The increased production is due to the constantly growing demand for liquefied natural gas in the Asia-Pacific region.

According to Galaev, Sakhalin Energy is one of the major producers of hydrocarbons. Most of its LNG is transported to Japan, South Korea, China and Taiwan. Last year 10 million tonnes of LNG, accounting for 65% of the total hydrocarbon production from Sakhalin, was produced and shipped for export.

The Sakhalin-2 project has the development of the Piltun-Astokhskoye and Lunskoye fields, whose recoverable reserves are estimated at 150 million tons of oil and 500 billion cubic meters of gas. The shareholders are Gazprom (50% plus one share), Royal Dutch Shell (27.5%) and Japan's Mitsui (12.5%) and Mitsubishi (10%). 

 

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