Bloomberg News

Sakhalin Energy Topped LNG Output Capacity, Delivery Plan

April 16, 2012

OAO Gazprom (GAZP) and its partners in the Sakhalin-2 project produced more than 10.6 million tons of liquefied natural gas last year, exceeding designed capacity by 10 percent after a nuclear disaster in Japan boosted demand.

Sakhalin Energy Investment Co. Ltd., operator of the project on Russia’s Sakhalin Island, shipped 162 cargoes of LNG last year compared with 150 tankers planned, Andrey Galaev, the venture’s chief executive officer, told Blue Fuel, a corporate magazine of Gazprom’s export unit, in a copy e-mailed today. One standard cargo is 145,000 cubic meters of LNG, he said.

Demand for LNG, gas chilled to liquid to ease transportation, has soared in Japan, South Korea and Asia after a March 2011 earthquake and tsunami led to the Fukushima nuclear disaster and raised Japan’s need for other fuels. The Sakhalin-2 plant with a designed capacity of 9.6 million tons of the fuel a year is Russia’s only LNG producing facility.

The facility adjusted equipment for “de-bottlenecking,” a practice that helps increase output by as much as 10 percent, Galaev said in the magazine.

Sakhalin Energy shipped 34 cargoes more than planned to Japan last year, some diverted from other buyers, Galaev said.

Gazprom’s partners in the project are Royal Dutch Shell Plc (RDSA), Mitsui & Co. (8031) and Mitsubishi Corp. (8058)

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at

To contact the editor responsible for this story: Will Kennedy at

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