Russia’s Sakhalin-2 LNG output seen down to 9.6 mln T in 2023

Liquefied natural gas (LNG) production from Russia’s Sakhalin-2 field is seen declining to 9.6 million metric tons in 2023 from 11.5 million tons last year, according to the local government’s web site.

Crude oil production at Sakhalin-1 and Sakhalin-2 is expected to be 10.2 million tons, while natural gas output is seen at 26.1 billion cubic metres this year.

Sakhalin Energy’s Sakhalin-2 operating company was transformed into a Russian entity via a presidential decree amid Western sanctions against Moscow over its actions in Ukraine.

Global energy major Shell SHEL.L left the project and operations in Russia last year.

Japanese companies Mitsui 8031.T and Mitsubishi 8058.T still jointly own 22.5% of the project, while the Russian state energy giant Gazprom GAZP.MM controls over 50%.
Source: Reuters (Reporting by Oksana Kobzeva and Vladimir Soldatkin; Editing by Kevin Liffey)