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UPI Energy Watch: Sakhalin-2 faces construction problems under Gazprom

Sakhalin-2 will not begin exporting oil and gas from the new terminals until the first half of next year due to construction and commissioning delays on Russia’s largest offshore project.

The Gazprom-led Sakhalin Energy Investment Co. continues to build and commission the oil and gas pipelines that run along the length of the east Russian island, but construction has been more complex than anticipated.

The consortium, which includes Shell, Mitsui and Mitsubishi, has installed two new platforms and built two export terminals and offshore pipelines as part of the Sakhalin II project.

Sakhalin Energy said oil exports from the new terminal in Aniva Bay will not begin until next year, and exports from a new liquefied natural gas plant will follow in the fourth quarter of 2008.

“We continue to make good progress on key milestones. This year we have installed the PA-B platform, completed the offshore pipelines and imported our first LNG cargo for commissioning the plant,” Sakhalin Energy said.

“It is not possible to be precise as to when the start-up of full production will happen. It depends on completion and testing of the facilities. We will start year-round oil shipments in the first half of 2008 and produce LNG in late second half 2008,” the company said.

Published: Sept. 28, 2007 at 2:24 PM

http://www.upi.com/International_Security/Energy/Analysis/2007/09/28/upi_energy_watch/5498/

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