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Shell considers third train at Sakhalin-2

UPI Energy Watch: Shell considers third train at Sakhalin-2

“A huge and diverse array of technical and environmental challenges have surrounded the project, including the need to reroute offshore pipelines to bypass feeding grounds for an endangered species of whale. In July, the Sakhalin Energy partners announced a massive revision to the project budget — to $20 billion from $10 billion — and a delay to first LNG deliveries.”

Wednesday 19 October 2005

Intl. Intelligence

By ANDREA R. MIHAILESCU

United Press International

Shell and Japanese partners Mitsui and Mitsubishi are evaluating options for a third train at their Sakhalin-2 LNG development on Russia’s Pacific Shelf.

Gas to supply a third train could come from a variety of sources, David Greer, deputy chief executive of Sakhalin Energy, the project operating company, said last Thursday during a presentation to an industry gathering in Scotland.

“The issue is getting the additional gas that would be required,” Greer said. “We are looking at deeper prospects in (the) Lunskoye (gas field). We have some space for a third train. It will be a question of earmarking the most appropriate reserves.” But a third train “wouldn’t be available much before 2012,” he said.

Sakhalin Energy is developing the second phase of Sakhalin-2, which involves building a 9.6 million ton per year two train LNG plant and a year-round oil export facility supplied from the fields at Piltun-Astokhskoye and Lunskoye offshore Sakhalin Island.

A huge and diverse array of technical and environmental challenges have surrounded the project, including the need to reroute offshore pipelines to bypass feeding grounds for an endangered species of whale. In July, the Sakhalin Energy partners announced a massive revision to the project budget — to $20 billion from $10 billion — and a delay to first LNG deliveries.

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