Gazprom ordered to sign contract in Q1 2024 to supply Sakhalin-2 LNG to Kamchatka

MOSCOW. Aug 21 (Interfax) - The Russian government has approved a roadmap for the gasification of Kamchatka Territory in the period to 2025 and the order to this effect has been published on the official website for legal information.

The first point of the document is an order for Gazprom to sign a contract in the first quarter of 2024 to supply liquefied natural gas (LNG) produced under the Sakhalin-2 project to provide gas services to consumers in Kamchatka Territory.

It was reported earlier that Novatek filed an application to buy Shell's (SPB: RDS.A) stake in Sakhalin-2, but the issue has still not been decided. Novatek CEO Leonid Mikhelson said earlier that there could be various arrangements for gas supplies to Kamchatka.

"At the last meeting I said that if we are given some sort of resource base, we will make provision in this resource base to supply a certain amount - 400 million-500 million cubic meters - at the FST price [to Kamchatka]. We have not been offered any fields," Mikhelson said.

By order of President Vladimir Putin, Russia-based Sakhalin Energy was named the operator of the Sakhalin-2 project instead of Bermuda-based Sakhalin Energy Investment Company Ltd. The shareholders of the company are Gazprom , and Japan's Mitsui and Mitsubishi.