Rosneft and ExxonMobil are progressing on
their proposed LNG project in the Russian Far East
with the launch of the contractor selection process for design
and engineering work, the companies said on Wednesday.
Rosneft and ExxonMobil said that in 2013 and 2014, they plan
to complete design work, including selection of a liquefaction
technology and identification of
major equipment requirements.
Also in that timeframe, the companies plan to perform
engineering surveys and develop front-end engineering and
design (FEED) and Russian Proyekt documentation for the LNG
plant, hydro-technical marine facilities and a source gas
Rosnefts offshore license areas hold massive
hydrocarbon resource potential, most of
which is natural gas," said Rosneft president Igor Sechin.
"Given the fact that offshore fields are difficult to reach and
are not connected to the national gas supply system, the most
efficient way to monetize these resources is to liquefy the
natural gas and sell the LNG in export markets."
Special attention during the design phase will focus on
minimizing environmental impact to the unique
ecosystem of the Sakhalin island and encouraging development of
local infrastructure, according to Rosneft officials.
The companies say a joint team of experts from Rosneft and
ExxonMobil will apply best practices from both companies to
complete the project in the shortest possible
We are optimistic about prospects for LNG export
liberalization in Russia in the near term and are pleased to
announce that we have entered an important stage of the LNG
project jointly with our strategic partner ExxonMobil," said
I would also point out that construction of the LNG plant and
essential infrastructure will rely on the full resources of the
Russian manufacturing and construction industries (primarily
those based in the Far East) applying international best
practices," he added.
Capacity of the LNG project to be located on Sakhalin
Island in the Russian Far East is expected to be 5 million tpy,
subject to further expansion. The liquefaction plant,
the launch of which is scheduled for 2018, will receive natural
gas from Rosnefts reserves in the Far East and other
Sakhalin gas reserves.