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Rosneft & ExxonMobil Proceed with LNG Implementation

Source: www.gulfoilandgas.com 8/21/2013, Location: Asia

Rosneft and ExxonMobil continue to progress the LNG project proposed in the Russian Far East. The contractor selection process for design and engineering work has officially commenced.

In 2013-2014 Rosneft and ExxonMobil plan to complete design work, including selection of a liquefaction technology and identification of major equipment requirements, to perform engineering surveys, develop Front End Engineering and Design (FEED) and Russian Proyekt documentation for the LNG plant, hydro-technical marine facilities and a source gas pipeline, as well as perform EIA.

Special attention during the design phase will focus on minimizing environmental impact to the unique ecosystem of the Sakhalin island and encouraging development of local infrastructure.

A joint team of experts from Rosneft and ExxonMobil will apply best practices from both companies to complete the project in the shortest possible timeframe.

Commenting on the progress of the LNG project in the Russian Far East, Rosneft President Igor Sechin said, “Rosneft’s offshore license areas hold massive hydrocarbon resource potential, most of which is natural gas. Given the fact that offshore fields are difficult to reach and are not connected to the national gas supply system, the most efficient way to monetize these resources is to liquefy the natural gas and sell the LNG in export markets.

“We are optimistic about prospects for LNG export liberalization in Russia in the near term and are pleased to announce that we have entered an important stage of the LNG project jointly with our strategic partner ExxonMobil.

“I would also point out that construction of the LNG plant and essential infrastructure will rely on the full resources of the Russian manufacturing and construction industries (primarily those based in the Far East) applying international best practices.”

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