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Sakhalin Energy Launches Gas Production on Far East Platform

Sakhalin Energy has launched gas production for the first time from the Lunskoye-A platform 15 km northeast off Sakhalin, the company said in a statement on Thursday

Gas from the LUN-A platform will be delivered to the Onshore Processing Facility from where it is being transited to a LNG plant in southern Sakhalin along the TransSakhalin pipeline, Sakhalin Energy said in a press release.

"This important step brings us very close to making this ambitious project a reality. With the start of LNG production in the next few weeks Sakhalin will truly become the new Russian energy source for Asia Pacific," Sakhalin Energy's Production Director Tim Hake was quoted as saying.

Sakhalin Energy is the operator and investor for the $20 billion Sakhalin II project which includes the Piltun-Astokhskoye and Lunskoye oil and gas fields on Sakhalin Island's northeastern shelf, with recoverable reserves estimated at 1.1 billion bbl of oil and 500 billion cubic meters of natural gas.

The minority partners in the project, Royal Dutch Shell, Mitsui and Mitsubishi, currently hold 27.5%, 12.5% and 10% stakes in the project respectively. Gazprom acquired a controlling stake (50% plus one share) in December 2006.

Author: Ksenia Kochneva