Russia sets up new entity to operate the Sakhalin-2 LNG export project

5 Aug 2022

The Russian government has established Sakhalin Energy as the new operator 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.

Gazprom will receive a 50% plus one share in the project, and the remaining 49.9% will be own by Sakhalin Energy. Existing Sakhalin-2 shareholders, which include Shell (27.5% minus one share), Mitsui (12.5%) and Mitsubishi (10%), are required to apply for a stake in the company. If they refuse join the new entity, their stake in the project will be sold to a Russian company.

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