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Oil & Gas Journal: SEIC to boost Sakhalin 2 liquefaction capacity

Eric Watkins
Senior Correspondent

LOS ANGELES, Oct. 19 — The annual capacity of the Sakhalin 2 liquefaction plant under construction on Sakhalin Island will be increased by 7 million tonnes, said a state official Oct. 18.

Regional Gov. Alexander Khoroshavin said the working group of project operator Sakhalin Energy Investment Co. has begun to draft a plan for the plant’s third stage.

The plant currently has two units with a total capacity of 9.6 million tonnes/year of LNG. It is due to be commissioned in 2008 after completion of start-up operations now under way.

Earlier this week SEIC said it received a second shipment of LNG for use in testing and start-up operations at the plant (OGJ Online, Oct. 17, 2007).

Sakhalin 2 is designed to produce LNG at two fields in southern Sakhalin, and the bulk of the LNG has been purchased in advance by US, Japanese, and South Korean companies.

Russia’s OAO Gazprom bought a 50% stake plus one share in the project for $7.45 billion in late 2006, leaving Royal Dutch Shell PLC, Mitsui, and Mitsubishi respective stakes of 27.5%, 12.5%, and 10% in the project.

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