RUSSIAN LNG CONTROL
ENERDATA - 4 Jul 2022 - The Russian government has signed a decree to take full control of the Sakhalin-2 LNG liquefaction project located in the far eastern oblast of Sakhalin, which comprises two LNG trains with a total capacity of 10.8 Mt/year. A third LNG train with a capacity of 5 Mt/year is planned by 2025. In addition, a fourth LNG train of 5 Mt/year was under consideration but remains frozen.
The decree created a new Russian firm that will take over all rights and obligations of Sakhalin Energy Investment Corporation. Russia will now decide whether the foreign partners can remain part of the project. The project is currently owned by a joint venture of Gazprom (50% plus one share), Shell (27.5% minus one share), Mitsui (12.5%) and Mitsubishi (10%). Shell had expressed its intention of withdrawing from the project in March 2022 after the start of the Russian invasion of Ukraine.