Gazprom and Rosneft to agree on gas price from Sakhalin-1 only in case of cheap oil - expert

​Rosneft will agree to sell gas from Sakhalin-1 to Gazprom if the world prices for oil stay low, and in these conditions Rosneft is not able to realize its LNG project in Sakhalin “Far East LNG”, experts say.

The operator of Sakhalin-1 – Exxon Neftegas – has long been trying to agree with Gazprom on gas supply from the project to the APR. Gazprom always insisted on gas supply to the domestic market.

Sakhalin-1 developed on the PSA conditions presupposes hydrocarbons extraction at 3 deposits – Chaivo, Odoptu and Arkutun-Dagi located in the north-eastern shelf of Sa Sakhalin in the water area of the Sea of Okhotsk.

Gazprom always initiated the negotiations with Rosneft on the gas sale from Sakhalin-1 for its liquefaction at its LNG-plant – the only existing LNG plant in Russia “Sakhalin-2”. However, the negotiations always ended with no result, in late 2014 Gazprom said that it planned to attract the Ministry of Energy to renew the negotiations with Exxon Neftegas.

The parties have contrary positions. Gazprom needs a gas source for Sakhalin-2, preferably cheap. This gas is also important for Exxon and Rosneft as they also intend to construct an LNG-plant. Meanwhile the fate of both projects is ambiguous, a partner of Rusenergy, M. Krutikhin, said.

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