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What Sanctions? Exxon and Japan Join Russia's $15bn LNG Project

Russia’s energy major Rosneft will build a new liquefied natural gas (LNG) plant in partnership with US ExxonMobil, Japan's SODECO and India's ONGC Videsh, Reuters reports.

The estimated $15 billion cost would be spread among the four firms, according to the news agency’s information. Rosneft, Exxon, SODECO and ONGC Videsh are all partners in the Sakhalin-1 LNG project. The new plant was intended to be built by Rosneft and Exxon, but the project was later joined by Indian and Japanese firms.

Sakhalin-1 is led by Exxon with a 30 percent stake. Another 30 percent belongs to SODECO, while Rosneft and ONGC Videsh own 20 percent each. LNG is not a subject of the anti-Russian sanctions, but Russian companies are facing problems with getting loans abroad.

Russia has an ambitious plan doubling its global LNG market share to 20 percent in the next decade. The country has two other LNG plants – Novatek's Yamal LNG and Gazprom's Sakhalin-2.

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On Tuesday, the Russian Direct Investment Fund (RDIF) announced Saudi Arabia is ready to invest $5 billion in the Arctic LNG 2 project. Novatek is planning to sell up to 40 percent of the project to foreign partners.

In December, Russia opened the Yamal LNG project. Costing $27 billion, the plant will have three production lines and a total capacity of 16.5 million tons of LNG per year. Almost 96 percent of the Yamal LNG plant’s production has already been contracted.

Source: RT
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