"Sakhalin - 2" to work on Russia more.

The government extended the royalties in the form of gas from the "Sakhalin - 2" PSA project, controlled by "Gazprom", for three years. The gas supply will be sent to Sakhalin and Primorye until 2017, when the monopoly will finally launch in full its Kirinsk field with the capacity of 4.5 billion cubic meters per year. Although at the moment it is unprofitable for "Gazprom" to invest in the Kirinsk project: the gas demand in the Far East is not growing, and there are still no agreements with China on exports, "the Kommersant" informs.

On May 12th the Prime Minister Dmitry Medvedev signed a decree, which extends the deadline for receipt of income in the form of gas from the "Sakhalin - 2" project in regular payments for the extraction of minerals (royalty) to 2017. The raw materials will be used for the deliveries to the customers in the Far Eastern Federal District. The RF Ministry of Energy should extend the contract with "Gazprom" on assignment of the in-kind income to the project to 2017. On September 6, 2011 the Government ordered to move to cash payments since the beginning of 2015. But, as explained in the order, an alternative source of gas for the DFO had to be "Gazprom"’s Kirinsk gas condensate field. But its development has not reached its designated capacity, and it was decided to extend the deadline for the receipt of royalty in kind. "Gazprom" has launched the Kirinsk deposit with the reserves of 162.5 billion cubic meters of C1 gas only in October 2013.