MOSCOW– Rosneft and ExxonMobil have started the design and engineering contractor selection process for a new LNG project on Sakhalin Island.
During 2014 the venture expects to complete design work, including the preferred liquefaction technology and identification of major equipment needs.
Rosneft President Igor Sechin said, “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.”
Capacity of the LNG project on the island will likely be 5 million tons/yr, subject to further expansion. The liquefaction plant, due to start operating in 2018, will receive natural gas from Rosneft’s reserves in the Far East and other Sakhalin gas structures.