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FSUOGM ENERGY TRANSITION FSUOGM

Sakhalin-2 group to ship carbon-

neutral LNG to Japan

RUSSIA THE Sakhalin Energy consortium developing carbon-neutral region in Russia by as early as
the Sakhalin-2 project in the Russian Far East 2023.
Carbon-neutral LNG plans to ship its first carbon-neutral LNG cargo
trading is on the rise. to Japan early next month. Sakhalin-1 investments
The delivery will be made under an agree- In related news, ExxonMobil will invest $5bn
ment with Japan’s Toho Gas, the recipient of the over the next five years in stabilising oil pro-
cargo. It will be shipped on board the Grand duction at the Sakhalin-1 project in the Russian
Aniva LNG carrier to the Chita LNG terminal Far East, the Sakhalin region’s governor, Valery
in Japan’s Aichi prefecture. Limarenko, said on September 28.
Sakhalin Energy, whose shareholders are ExxonMobil operates Sakhalin-1 project with
Russia’s Gazprom, Royal Dutch Shell and Jap- a 30% interest, while Russia’s Rosneft controls
anese firms Mitsui and Mitsubishi, controls a 20%, Japanese consortium SODECO has 30%
10mn tonne per year (tpy) LNG export terminal and Indian firm ONGC has 20%. Comprising
on Sakhalin Island. the Chayvo, Odoptu-Sea and Arkutun-Dagi
Carbon-neutral LNG trading has grown in fields, the project accounts for 70% of oil and
popularity over the past year, even though it stills gas condensate output on the island, Limarenko
accounts for only a miniscule share of the overall said at the Sakhalin Oil & Gas 2021 forum. But
amount of LNG that is bought and sold. LNG production is in decline, and the consortium will
can be classified as carbon neutral if the parties need to take steps to arrest this trend, he said.
involved in the trade obtain certificates gener- “ExxonMobil plans to direct investment to
ated at projects that reduce or avoid emissions. the tune of $5bn,” the governor was quoted as
But as the International Energy Agency (IEA) saying by RIA Novosti.
noted recently, there currently does not exist a Sakhalin-1 yielded 12.4mn tonnes (250,000
uniform system for monitoring, reporting and barrels per day) of oil and condensate last year,
verifying the emissions that result from each along with 2.4bn cubic metres of gas, according
cargo. to energy ministry data. This crude is delivered
“Amid the global energy transition, Sakha- via the Trans-Sakhalin pipeline to a processing
lin Energy considers environmental protection facility and is then exported on tankers to mar-
intrinsic to all production processes and aims kets primarily in the Asia-Pacific region.
at the progressive reduction of greenhouse Besides natural decline, the Sakhalin-1
gas [GHG] emissions,” Sakhalin Energy CEO group has also had to cut production because of
Roman Dashov said in a statement. “The com- OPEC+ restrictions. Sakhalin-1 and Sakhalin-2
pany’s decarbonisation initiatives are complex together cut production by 5.4% in 2020. They
measures within production processes that will forecast a further decline of 11.4% in 2022 and
result in the delivery of the first carbon-neutral 2.6% in 2023.
LNG at the Sakhalin-2 project.” Limarenko said the Sakhalin Energy group
The group “will continue moving in this operating Sakhalin-2 was continuing active field
direction,” he said, “developing co-operation development.
with the buyers in the Asia-Pacific region, who “In addition, the focus of the company is on
place a big focus on the range of environmental growth projects relating to the expansion of its
issues.” mineral resource base at the existing licence
Sakhalin has set a goal of becoming the first areas,” the governor said. ™

Week 39 29•September•2021 www. NEWSBASE .com P17