25 Jan 2023 09:41

Russia extends Gazprom's right to Sakhalin-2 gas as royalty until 2030

MOSCOW. Jan 25 (Interfax) - The Russian government has issued an order to extend the period for which natural gas due to Russia as royalties for natural resource extraction and as its share of profitable product from the production sharing agreement on the Sakhalin-2 project can be used for supplying consumers in the Far East Federal District until the end of 2030.

The order, dated January 23, has been published on the official website for legal information.

It was initially presumed that Gazprom would receive and sell Sakhalin-2 gas from 2011 to 2014, but then this period was extended to the end of 2017.

The new document sets the maximum amount of supplies as follows: up to 1.5 billion cubic meters in 2015; 1.3 bcm in 2016; 1.2 bcm annually in 2017-2023; and 1 bcm annually in 2024-2030, "taking into account the possibility of increasing supplies with the balance of gas accumulated as of December 31, 2016 on the Sakhalin-2 project operator's obligations to the Russian Federation."

Revenue from the sale of this gas, at regulated domestic prices, is transferred to the state budget, less Gazprom's regulated transportation expenses.