Rosneft and Gazprom compete for the gas of Sakhalin-1

The two state companies conduct negotiations with Exxon about gas deliveries from Chaivo for processing at their LNG plants.

Gazprom expects to come to an agreement with the operator of Sakhalin-1 Exxon about the purchase of gas from Chaivo for the acting LNG plant in the Prigorodnoe settlement, a high-ranking source in the gas monopoly reported. However, Rosneft has its plans for this gas, too. The company lobbies for the construction of an LNG plant (more than 5 million tons per year) in Sakhalin in cooperation with Exxon. In prospect the company is going to export the product independently.

Currently Russia controls only 4.5% of the world LNG market. LNG is produced only at one plant in the country – in the Prigorodnoe settlement. The two lines of the plant with the total capacity of more than 10 million tons per year operate in the framework of Sakhalin-2 PSA (the joint project of Gazprom, Shell, Mitsubishi and Mitsui).