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The Moscow Times: India Plans to Liquefy Sakhalin Gas

Monday, July 24, 2006. Issue 3459. Page 8.
Reuters

NEW DELHI — Flagship Indian energy firm Oil and Natural Gas Corp. is in talks over exporting its share of natural gas from Sakhalin-1 via Royal Dutch Shell’s nearby LNG terminal, an Indian oil ministry official said.

The move to make liquefied natural gas at Sakhalin-1, a multibillion-dollar project on the Pacific Coast, runs counter to operator ExxonMobil’s long-held plan to sell the gas via a pipeline to nearby Japan.

“We are keen on getting LNG from Sakhalin-1,” the ministry official, who did not wish to be identified, said Friday. “India needs LNG desperately. Shell has a liquefaction facility for Sakhalin-2 and we can use that. We have had some discussions and will meet them again on July 31.”

Exxon said it still planned to supply Sakhalin-1 gas by pipeline to North East Asian markets like China and Japan. Still, the company said it was exploring all “reasonable opportunities to maximize the value” of the gas resource.

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