Russia is expected to begin natural gas production at the new Sakhalin-3 project in the Pacific Ocean by 2028, with output intended for both domestic use and exports to China, according to Russian news agencies citing the regional governor.
Gazprom, in cooperation with local authorities, is developing plans to build a refinery in southern Sakhalin. The facility will process gas condensate into jet fuel, diesel, and naphtha. The Sakhalin-3 area includes four gas fields, notably the Kirinskoye field, which holds estimated reserves of 162 bcm of natural gas. This field was placed under U.S. sanctions in 2015 in response to Russia’s involvement in the Ukraine crisis.
Located within the Kirinsky block in the Sea of Okhotsk, the Kirinskoye field also contains oil. According to Gazprom, the adjacent Yuzhno-Kirinskoye field contains reserves of approximately 711.2 bcm of natural gas, 111.5 Mt of gas condensate, and 4.1 Mt of oil.
In September 2025, Russia and China signed a binding agreement for the Power of Siberia 2 gas pipeline (50 bcm/year) and agreed to boost gas flows through existing routes. Deliveries via Power of Siberia 1 will rise from 38 to 44 bcm/year, while supplies through the Far Eastern route, including Sakhalin, are expected to increase from 10 to 12 bcm/year starting in 2027.