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Sakhalin-2 group to ship carbon-
neutral LNG to Japan
ENERGY THE Sakhalin Energy consortium developing carbon-neutral region in Russia by as early as
TRANSITION the Sakhalin-2 project in the Russian Far East 2023.
plans to ship its first carbon-neutral LNG cargo
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 Rus- ExxonMobil operates Sakhalin-1 project with
sia’s Gazprom, Royal Dutch Shell and Japanese a 30% interest, while Russia’s Rosneft controls
firms Mitsui and Mitsubishi, controls a 10mn 20%, Japanese consortium SODECO has 30%
tonne per year (tpy) LNG export terminal on and Indian firm ONGC has 20%. Comprising
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 gas condensate output on the island, Limarenko
stills accounts for only a miniscule share of the said at the Sakhalin Oil & Gas 2021 forum. But
overall amount of LNG that is bought and sold. production is in decline, and the consortium
LNG can be classified as carbon neutral if the will need to take steps to arrest this trend, he
parties involved in the trade obtain certificates said.
generated at projects that reduce or avoid emis- “ExxonMobil plans to direct investment to There currently
sions. But as the International Energy Agency the tune of $5bn,” the governor was quoted as
(IEA) noted recently, there currently does not saying by RIA Novosti. does not exist a
exist a uniform system for monitoring, report- Sakhalin-1 yielded 12.4mn tonnes (250,000
ing and verifying the emissions that result from barrels per day) of oil and condensate last year, uniform system
each cargo. along with 2.4bn cubic metres of gas, according
“Amid the global energy transition, Sakha- to energy ministry data. This crude is delivered for monitoring,
lin Energy considers environmental protec- via the Trans-Sakhalin pipeline to a processing reporting and
tion intrinsic to all production processes and facility and is then exported on tankers to mar-
aims at the progressive reduction of green- kets primarily in the Asia-Pacific region. verifying the
house gas [GHG] emissions,” Sakhalin Energy Besides natural decline, the Sakhalin-1
CEO Roman Dashov said in a statement. “The group has also had to cut production because emissions that
company’s decarbonisation initiatives are of OPEC+ restrictions. Sakhalin-1 and Sakha-
complex measures within production pro- lin-2 together cut production by 5.4% in 2020. result from each
cesses that will result in the delivery of the They forecast a further decline of 11.4% in 2022 cargo.
first carbon-neutral LNG at the Sakhalin-2 and 2.6% in 2023.
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 01•October•2021 www. NEWSBASE .com P11