Russia expects the new Sakhalin-3 project to begin operations in 2028

Russian news agencies reported on Thursday that the country is expecting to begin natural gas production in 2028 at the new Sakhalin-3 Project in the Pacific Ocean to supply gas to China as well as for domestic use.

Valery Limarenko said that Gazprom, the Russian energy giant, and regional authorities were working together on a plan for a refinery to be built in southern Sakhalin, to produce jet-fuel, diesel, and naphtha using gas condensate.

A crisis in the relations between Russia and the West due to the conflict in Ukraine has led to Russia diversifying its oil exports from Europe towards Asia.

Gas supplies will begin in 2027 via a pipeline from Russia to China that is designed to transport gas through the Far Eastern route, from Sakhalin. The gas exports are expected to reach 12 billion cubic meters per year, an increase from the initial 10 bcm.

We link the prospects of industry to the implementation Sakhalin-3 Project. The launch date is 2028. The governor said that this gas will be used to meet the needs of China as well as the Far East.

Sakhalin-3 also includes Yuzhno Kirinskoye, a field that was sanctioned by the United States in 2015 due to Moscow's involvement in the Ukraine crisis.

Oil is also found in this field which is part of the Kirinsky Block in the Sea of Okhotsk. Sanctions are imposed on the exploration or production of oil or gas deep in Russian waters.

Gazprom data shows that Yuzhno-Kirinskoye has reserves of 711.2 billion cubic meters of natural gas and 111.5 millions tonnes of gas condensate, as well as 4.1 million tons of oil. (Reporting and editing by Shri Navaratnam.)

(source: Reuters)