Sakhalin cannot carry double – Rosneft and Gazprom divide the resources of the island

Gazprom and Rosneft, which plan to construct new LNG plants in the Far East for the Asia-Pacific region’s market, can’t divide the sources of the raw materials. According to the Ministry of Energy, 47 billion cubic meters of gas will be able to be produced in Sakhalin by 2020. Theoretically this will be enough for everybody. But officials, participants of the market and analysts acknowledge that the resource base is not clear and they will have to postpone one of the projects for gas supply in the region. The perspective of the Rosneft’s project raises questions in the Presidential Administration.

Yesterday, President Vladimir Putin held a meeting in Yuzhno-Sakhalinsk, where questions about development of LNG production in the region and gas supply in the Far East were raised. The only LNG plant (the Sakhalin-2 project) in Russia, belongs to Gazprom, Shell, Mitsui and Mitsubishi, it has been working in Sakhalin for a while. But by 2018 the gas monopoly wants to build another LNG plant in Vladivostok and Rosneft plans to implement the similar project in Sakhalin