Japan's JGC Corp Looking to Build Mini LNG Plant in Russia's Sakhalin

Japan's JGC Corporation is exploring the possibility of building a mini LNG plant in Russia’s Sakhalin region, press service of the Sakhalin region government said on Monday.

The topic of the construction of mini LNG plant was discussed in May this year during a visit to Japan by the representative Russian delegation headed by Deputy Prime Minister Yuri Trutnev. On Monday, a member of the JGC’s Board of Directors Masanori Suzuki arrived in Sakhalin to explore on-site the possibility of implementation of the project.

The LNG plant will be supplied gas from the Aniva gas fields. Suzuki intends to visit the gas fields, the press service stated.  Suzuki is expected to explore possible sites for the plant, and select the option that requires minimal construction costs and would be the most convenient in terms of the logistics of products supplies.

Sakhalin region has attracted major energy firms because of it abundant oil and gas resources. The Sakhalin-I project is a consortium to locate and produce oil and gas on Sakhalin Island and immediately offshore, in the Okhotsk Sea, from three fields: Chayvo, Odoptu, and Arkutun-Dagi.

The Sakhalin-2 project includes development of the Piltun-Astokhskoye oil field and the Lunskoye natural gas field offshore Sakhalin Island in the Okhotsk Sea, and associated infrastructure onshore. Sakhalin-2 includes the first LNG plant in Russia.