Sakhalin Energy Set a Record for LNG Production
Department of corporate relations
News from projects and regions
In 2020 Sakhalin Energy produced and shipped a record amount of liquefied natural gas (LNG): 178.6 standard cargo (one standard cargo is equivalent to 65 thousand tonnes) or more than 11.6 million tonnes. This is the best Sakhalin II LNG plant annual performance ever.
“Despite unprecedented challenges, both external, including the COVID-19 pandemic and economic crisis, and internal requirements to ensure a “virus-free” status of our assets, we managed to maintain business continuity and reach a historic high production for LNG. Customer focus and reliable supplies through sustainable production are key objectives for our company”, – noted Roman Dashkov, Chief Executive Officer of Sakhalin Energy.
Most of natural gas is produced by the company at the LUN-A platform in the Lunskoye field, north of Sakhalin. Further the gas is transported via transsakhalin pipeline system through the onshore processing facility to the LNG plant. Its original design capacity is 9.6 mtpa, but due to technical improvements and upgrade, together with weather and temperature factors, the factual production has been increased by 20 percent.
Implemented measures against the COVID-19 allowed to successfully perform summer shutdown activities in maintenance, repairing and diagnostics of the equipment. During the year the company's assets demonstrated a world-class reliability, resulting in above-target performance for the production and shipment of LNG to the buyers.
The company supplies LNG to the Asia-Pacific with major customers from Japan, South Korea, Taiwan, and China. Sakhalin Energy continues to expand the market in such a difficult time – since the launch of the Sakhalin-2 project, the company's LNG has been delivered to 49 ports located in 8 countries, with Singapore added to the list in 2020. More than 125.8 million tonnes of LNG have been produced since the launch of the LNG plant in 2009.
Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) is the operator of the Sakhalin II oil and gas project under which large-scale infrastructure for hydrocarbon production, transportation and processing has been created. The company supplies the market with oil from the reserves of the Sea of Okhotsk and liquefied natural gas from Russia’s first-ever LNG plant, which was built by Sakhalin Energy in the southern part of Sakhalin Island.
The company’s shareholders are Gazprom (50 per cent plus one share), Royal Dutch Shell (27.5 per cent minus one share), Mitsui & Co. Ltd (12.5 per cent), and Mitsubishi Corporation (10 per cent).