Moscow turns screws on Sakhalin 1

Action stations: work is still being carried out on Sakhalin 1

VLADIMIR AFANASIEV

related stories

Anthea Pitt

 02 August 2007 14:53 GMT

Moscow wants ExxonMobil to send gas from Sakhalin 1 to Russia rather than Asian markets, the energy ministry said today, signalling a new round of pressure on the country's last big foreign-led energy project.



"The state representatives informed the investors' consortium about Russia's priority to supply gas from Sakhalin 1 to the domestic market," the ministry said in a statement following a meeting of Sakhalin 1's supervisory committee.

In 2004, ExxonMobil signed a preliminary agreement to supply 8 billion cubic metres of Sakhalin 1 gas to China National Petroleum Corporation, but it has also held talks with Japan and India, which want to import Sakhalin's gas as liquefied natural gas.

Russia's Gazprom, which has monopoly right to export Russian gas, asked the government in June…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index