Royal Dutch Shell Plc  .com Rotating Header Image

The Moscow Times: Shell Reviews More LNG Units

Monday, February 5, 2007. Issue 3589. Page 6.
Bloomberg

LONDON — Shell will build more liquefied natural gas processing units at its Sakhalin-2 project in Russia if it gains access to more reserves with Gazprom, its new state-run partner.

Shell and its two Japanese partners agreed in December to sell Gazprom half their stakes in the Sakhalin-2 venture, which includes the country’s first LNG export terminal. Shell had anticipated years before the deal with Gazprom that it might build more LNG units, called trains, to create an export hub for Sakhalin-area projects.

“We have in the design of the present two-train LNG complex enough space to add additional trains,” Shell CEO Jeroen van der Veer said Thursday. “There’s only a point to add additional trains if you have secured long-term supply of additional resources. To have a Russian partner — because not everything is opened up around Sakhalin island yet — may help.”

Shell’s proven reserves will drop by about 400 million barrels of oil equivalent when the equity transaction with Gazprom is concluded this year, which will give Gazprom majority control of the project. Van der Veer said Shell’s agreement with Gazprom is to “look together for additional resources in the Sakhalin area.”

The LNG site is now 95 percent complete and long-term gas sales for the second phase of the project have been completed.

The Hague-based Shell and Japanese partners Mitsui and Mitsubishi will own 27.5 percent, 12.5 percent and 10 percent, respectively, once the equity sale to Gazprom is complete.

This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comment Rules

  • Please show respect to the opinions of others no matter how seemingly far-fetched.
  • Abusive, foul language, and/or divisive comments may be deleted without notice.
  • Each blog member is allowed limited comments, as displayed above the comment box.
  • Comments must be limited to the number of words displayed above the comment box.
  • Please limit one comment after any comment posted per post.