Sakhalin 1 operator Exxon Neftegaz is pushing ahead with plans to build its own liquefaction plant to exploit gas reserves at three fields off Sakhalin Island in Russia's far east, despite the option of supplying volumes for an expansion of the Gazprom-led Sakhalin 2 venture.

Exxon Neftegaz project manager James Grable told last week's Russian LNG Congress in Moscow that the LNG plant remains a competitive option following extensive research over the past two years into design and cost optimisation, as well as surveys of the proposed location.