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Sakhalin-2 LNG Project to Be Suspended

Sakhalin-2 is one of two projects in Russia's Pacific offshore being developed by foreigners

Sakhalin-2 LNG Project to Be Suspended

Russia?s natural resources ministry on Thursday called for the suspension of pipe-laying work at a giant oil and liquefied natural gas project led by Shell on Russia's far eastern island of Sakhalin.

The ministry said it had received a report from the far eastern branch of the Russian Academy of Sciences that found that the coastal sections of pipeline Sakhalin were in danger of being damaged by mudslides.

Oleg Mitvol, a deputy head of the ministry?s environmental watchdog division, said that the dangers had arisen due to ?unqualified design solutions? implemented by Sakhalin Energy, the consortium led by Royal Dutch Shell.

Sakhalin-2 is one of two projects in Russia?s Pacific offshore being developed by Western oil companies under production-sharing agreements signed in the early 1990s.


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