Russia Journal: Shell ready to work in Russia: “Shell is ready to invest in development of Russian hydrocarbon fields and to use Russian natural gas export system, according to Russia’s Prime Minister Mikhail Fradkov.”(ShellNews.net)
October 11, 2004
Shell is ready to invest in development of Russian hydrocarbon fields and to use Russian natural gas export system, according to Russia’s Prime Minister Mikhail Fradkov.
The fields in question are the Shtokman field, the Sakhalin field, and a number of other fields, which are not being publicly discussed yet.
Shell has a 55% stake in Sakhalin Energy, the operator of the Sakhalin-2 project.
The Financial Times said Royal Dutch/Shell was considering plans to expand a plant to produce LNG under the Sakhalin-2 project.
Due to the sudden high demand for LNG, Shell and other Sakhalin Energy shareholders have approved a feasibility study to build a third line at the LNG plant for 4.8 million tonnes a year, which will increase production by 50%.
Sakhalin Energy, the operator for the Sakhalin-2 project, is building an LNG plant in southern Sakhalin under the second stage of the project. The plant will have two lines with capacity for 9.6 million tonnes of LNG a year. Construction will be completed by the end of 2007.