Sakhalin II

Russia’s only liquefied natural gas plant

Strategy

Eastern Siberia and the Russian Far East are top priority regions for Gazprom in the long term.

The state policy on the gas industry development in eastern Russia is outlined in the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom serves as the Program coordinator.

The project includes the ongoing development of the Piltun-Astokhskoye and Lunskoye oil and gas fields in the Sea of Okhotsk under a production sharing agreement. The Trans-Sakhalin pipeline system conveys extracted oil and gas via an onshore processing facility to the Prigorodnoye production complex that comprises an LNG plant and an oil export terminal.

Figures and facts

Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the Sakhalin II project operator.

The Sakhalin Energy shareholders are:

  • Gazprom Sakhalin Holdings B.V. (a subsidiary of Gazprom, 50 per cent plus one share);
  • Shell Sakhalin Holdings B.V. (a subsidiary of Royal Dutch Shell plc., 27.5 per cent minus one share);
  • Mitsui Sakhalin Holdings B.V. (a subsidiary of Mitsui & Co., Ltd., 12.5 per cent);
  • Diamond Gas Sakhalin B.V. (a subsidiary of Mitsubishi Corporation, 10 per cent).

In 2016, Sakhalin Energy extracted 5.51 million tons (42.92 million barrels) of oil and condensate and produced 10.93 million tons of LNG.

Development

April 1994

Sakhalin Energy is set up.

June 22, 1994

Sakhalin Energy, the Government of the Russian Federation, and the Administration of the Sakhalin Region sign the Production Sharing Agreement to develop the Piltun-Astokhskoye and Lunskoye oil and gas fields.

1996

The project’s Phase 1 is launched.

1999

The Piltun-Astokhskoye field begins producing oil.

2003

Phase 2 starts, providing for the comprehensive development of the Piltun-Astokhskoye and Lunskoye fields.

Drilling operations at Lunskaya-A platform

Drilling operations at Lunskaya-A platform

2007

Gazprom and Sakhalin Energy shareholders sign the Purchase and Sale Agreement, pursuant to which Gazprom acquires a 50 per cent stake plus one share in Sakhalin Energy.

2009

The first Russian LNG plant is commissioned in Sakhalin. The design capacity of its two production trains is 9.6 million tons of LNG per year.

2015

In June, Gazprom and Shell sign the Memorandum to construct the third production train of the LNG plant within Sakhalin II. The document sets target dates for the design stage and the project implementation in general and outlines further steps and main principles of cooperation between the parties in preparing a final investment decision.

In December, Sakhalin Energy starts to develop project documentation.

Technologies

The technologies for offshore hydrocarbon production and gas liquefaction are under optimization as part of the project.

Onshore processing facility, central control room

Onshore processing facility, central control room

Molikpaq (Piltun-Astokhskaya-A) platform

Molikpaq (Piltun-Astokhskaya-A) platform is the first offshore oil production platform in Russia. Between 1999 and 2008, the platform was the core facility of the Vityaz production complex that comprised also the Okha tanker (double-hull floating storage and offloading unit), a single-anchor leg mooring buoy, and a subsea pipeline.

Molikpaq (Piltun-Astokhskaya-A) platform, first offshore oil production platform in Russia

Molikpaq (Piltun-Astokhskaya-A) platform, first offshore oil production platform in Russia

The production complex was used to perform oil drilling, production and offloading, as well as related support and exploration activities. Oil was produced during ice-free periods of six months per year.

The year-round production at the platform started in December 2008. From the Molikpaq platform oil travels through the Trans-Sakhalin pipeline system to the oil export terminal of the Prigorodnoye production complex.

Prigorodnoye production complex, Sakhalin II project

Prigorodnoye production complex, Sakhalin II project

Piltun-Astokhskaya-B platform

Piltun-Astokhskaya-B platform is the largest platform within the Sakhalin II project. Since 2008, the platform has been extracting oil and associated gas from the Piltunskaya feature of the Piltun-Astokhskoye oil field. The Trans-Sakhalin pipeline system delivers hydrocarbons to the LNG plant and oil export terminal of the Prigorodnoye complex. The platform is designed to operate all year round under severe weather conditions and wave, ice and seismic loads.

Prigorodnoye production complex

Prigorodnoye production complex

Lunskaya-A (LUN-A) platform

Lunskaya-A (LUN-A) platform is the first offshore gas production platform in Russia. The platform produces the bulk of gas under Sakhalin II. Such operations as oil, condensate and gas separation, including gas treatment for transportation to the LNG plant, are performed at the onshore processing facility. The platform is designed to operate all year round under severe weather conditions and wave, ice and seismic loads.

Lunskaya-A (LUN-A) platform

Lunskaya-A (LUN-A) platform

LNG plant

LNG plant comprises two production trains and general service facilities. The production trains are used for gas treatment and liquefaction. The double mixed refrigerant technology applied in LNG production is developed by Royal Dutch Shell.

LNG plant

LNG plant

That state-of-the-art technology was developed specifically for the Sakhalin LNG plant to ensure its maximum efficiency during cold Sakhalin winters. The design capacity of the plant is 9.6 million tons of LNG per year.

Environment and responsibility

The project is implemented in the area of high seismicity. Special engineering solutions are put in place to ensure on-site safety. For instance, the offshore platforms are designed to resist loads caused by earthquakes, which are likely to occur once in 200 years, with no equipment damage or failure. Similar safety precautions are provided at the LNG plant, the onshore processing facility, and pipeline systems.

The pioneering use of a cradle mechanism (sliding pendulum bearings) between the topsides and the concrete-reinforced bases ensures safe operation of offshore platforms. Thanks to the installed slide-type legs, the offshore platforms can withstand seismic loads. During off-peak periods, those special legs help reduce ice and wave loads on the platforms and equipment thereof.

If an earthquake hits, legs will allow the topsides swaying smoothly on special hinges, thereby preventing the destruction of a whole structure. Such technologies have been applied for the first time in the global history of the oil and gas industry.

In 2015, Sakhalin Energy was third in the annual environmental responsibility ranking of Russian oil and gas companies and received a special diploma for its contribution to the development of corporate programs aimed at preserving biodiversity.