19 Jul 2013 15:37

Russian Railways expects growth for LNG shipments on Sakhalin

MOSCOW. July 19 (Interfax) - Freight shipments on Sakhalin Island are declining as power companies in the region switch from coal to liquefied natural gas (LNG), as well as due to growing competition from trucks on short hauls, but shipments of LNG should increase in the near future, Russian Railways (RZD) said.

"A fairly strong center of gas production has become established here now, and it is growing rapidly. There is an agreement on the start of construction of another LNG plant, a new district power plant, accompanying production facilities. All of this is directly linked to upcoming transport shipments. We need to be ready to accommodate this volume," RZD president Vladimir Yakunin said during a visit to the island, the company's press service reported.

He said available capacity needs to be used more efficiently, and the "fight for the client must remain a priority."