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How Shell helps Russia pump oil and gas

CNN

How Shell helps Russia pump oil and gas

London (CNN Business)The West is promising “massive” sanctions on Moscow in response to Russia’s invasion of Ukraine.

French President Emmanuel Macron said Thursday that European sanctions would target Russia’s military, economy and energy, and Germany’s decision this week to halt certification of the Nord Stream 2 pipeline built by Russia’s Gazprom shows that the vast oil and gas sector isn’t off limits.

But any action that affects Russia’s energy interests will highlight the role played by some of the West’s biggest players, which have generated billions of dollars for the Russian state and are among the country’s leading foreign investors.

Shell

The UK-based company’s biggest engagement in Russia is Sakhalin-2, which it describes as one of the world’s largest integrated oil and gas projects.

Shell has a 27.5% stake in the venture, which is controlled by Gazprom. Other investors include Mitsui (MITSY) and Mitsubishi of Japan.

The project includes three offshore platforms, an onshore processing facility, 300 kilometers (186 miles) of offshore pipelines and 1,600 kilometers (994 miles) of onshore pipelines, an oil export terminal and a liquefied natural gas (LNG) plant.

Shell says Sakhalin-2 supplies about 4% of the world’s current LNG market. Japan, South Korea and China are the main customers for oil and LNG exports.

A Shell spokesperson said it was monitoring the situation closely, but declined to comment on the company’s investments in Russia.

— Chris Liakos and Chris Isidore contributed reporting.

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