Gazprom and Shell agree on moving over to design stage of project for third train of LNG plant in Sakhalin
RELEASE
Release
The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Peter Voser, Chief Executive Officer of Shell.
Taking part in the meeting was also Ben van Beurden who will be Chief Executive Officer of Shell from January 1, 2014.
The parties discussed the current state of and the development prospects for the strategic cooperation in the Russian and international oil and gas markets. A focus was placed on promoting the joint activities in the areas of geological exploration, oil and gas production, processing and sales as well as LNG production.
The parties also addressed the prospects for the Sakhalin II project expansion and agreed to advise Sakhalin Energy to submit for consideration of the company's Board of Directors and Supervisory Board the issue of moving over to preparing FEED documents for the construction project of the third LNG process train in Prigorodnoye settlement, Sakhalin Island.
The parties resolved to get ready for signing a detailed Road Map for the abovementioned FEED documents in February 2014.
Background
Shell is a British-Dutch oil and gas company focused on hydrocarbons production, processing and marketing in over 90 countries worldwide.
Sakhalin Energy is the Sakhalin II project operator. The company's shareholders are Gazprom holding 50 per cent plus one share, Shell – 27.5 per cent minus one share, Mitsui & Co. – 12.5 per cent and Mitsubishi Corporation – 10 per cent.
As part of the project, in early 2009 Russia's first LNG plant was commissioned and Russian LNG supplies to foreign consumers started. In 2010 the plant reached its design capacity of 9.6 million tons per annum.
A total of 10.52 million tons of LNG and 5.26 million tons of oil were produced within the Sakhalin II project in 2013.