From Russia: Sakhalin-II oil and gas!

Russia opened for business the first liquefied natural gas (LNG) plant in Sakhalin on Wednesday. President Dmitry Medvedev was present at this historical event.

The plant which looks like a success is one one many planned plants to liquefy gas produced as part of the Sakhalin-II oil and gas project off Russia’s Pacific Coast. It will produce some 9.6 million metric tons of LNG annually.

The success part is that Japan, the United States and South Korea have already signed contracts with Russia to buy the bulk of the gas within the next 25 years. Tankers with a capacity of 18,000 to 145,000 cubic meters will be used to deliver the LNG from the plant.

More and more countries need LNG and are lined up in a waiting list to receive gas. Russia has looked at this project as a way to also help Europe get gas during times of crises such as when Ukraine played games with gas transit this Winter.

Russia says we will just ship it by tanker…

Kyle & Svet

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