06:20 GMT +321 November 2019
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    The flare system at Russia's first liquefied natural gas (LNG) plant (the Sakhalin II project), built by Sakhalin Energy Investment Company Ltd. in the village of Prigorodnoye in southern Sakhalin.

    Gazprom, Shell Agree on Construction of LNG Plant in Sakhalin

    © Sputnik / Sergey Krasnouhov
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    The CEOs of Gazprom and Shell - Alexei Miller and Ben van Beurden - signed the memorandum at the St. Petersburg International Economic Forum.

    ST. PETERSBURG (Sputnik) – Russian energy company Gazprom and the Anglo-Dutch Shell company signed a memorandum on Thursday on the construction of a third technical line for a liquefied natural gas plant on Sakhalin Island on Russia’s Pacific Coast.

    The CEOs of Gazprom and Shell, Alexei Miller and Ben van Beurden, signed the memorandum at the St. Petersburg International Economic Forum.

    The Sakhalin-2 field, located in Russia's eastern island of Sakhalin, includes the first liquefied natural gas plant in Russia. The field is operated by Sakhalin Energy, in which Gazprom holds a 50 percent plus one share and Shell a 27.5 percent minus one share.

    In May, Gazprom stated it planned to maintain the level of gas extraction at the Sakhalin-2 field at 16 to 17 billion cubic meters in 2015.

    According to the Russian energy company, some 65 percent of Sakhalin LNG is delivered to Japan.

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    Tags:
    Gazprom, Shell, Ben van Beurden, Alexei Miller, Russia, Sakhalin Island
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