20 Feb 2024 19:12

Sakhalin-2 LNG production exceeded 10 mln tonnes in 2023

MOSCOW. Feb 20 (Interfax) - Sakhalin Energy LLC, operator of the Sakhalin-2 project, produced more than 10 million tonnes or 160 standard cargoes of liquefied natural gas in 2023, up from 11.5 million tonnes in 2022, company materials say.

Current Sakhalin-2 project operations are carried out in accordance with approved documents for the development of fields and optimization of the operating modes of main process equipment.

The plant is producing about 32,000 tonnes of LNG daily at present.

Russia received more than 1 billion cubic meters of gas from the project last year, and over 14 bcm since the gas supplies started in 2011. Last year's gas supplies were level with the quota set by the government. Sakhalin Region consumers received more than 771 million cubic meters of gas in 2023 and almost 8 bcm since 2011.

The government in January 2023 issued by order N98-rubles which amended its previous order N1539-r dated September 6, 2011, according to which Gazprom is assigned the right in the period from September 2011 to December 2030 to receive income in kind (natural gas) attributable to the Russian Federation in lieu of royalties for the extraction of mineral resources and as a share of profit gas from the production sharing agreement for the Sakhalin-2 project in volumes determined by the Russian Energy Ministry, but not more than 1.5 bcm 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 against the balance of gas accumulated as of December 31, 2016 under the obligations of the Sakhalin-2 project operator to the Russian Federation.

Sakhalin-2 involves the development of the offshore Piltun-Astokhskoye and Lunskoye fields off the Sakhalin coast.

The Sakhalin-2 LNG plant in Prigorodny, at the southern end of Sakhalin Island, went into operation in February 2009 and reached full design capacity of 9.6 million tonnes of LNG per year in 2010.

Project operator Sakhalin Energy LLC's co-owners include Gazprom, Mitsui and Mitsubishi.