Sakhalin-1 Gas Deliveries to Khabarovsk Krai Reach 10 Bcm (Russia)

Exxon Neftegas Limited, on behalf of the Sakhalin- 1 Consortium, announced that Sakhalin-1 cumulative gas delivered to Khabarovsk Krai customers from the beginning of supplies have reached a milestone of 10 billion cubic meters.

“Sakhalin-1 remains the major source of reliable, cleaner-burning fuel supplies for Russian Far East economy and households,” said Exxon Neftegas Limited President James Taylor.

“Sakhalin-1 is committed to bringing energy stability to Khabarovsk Krai and contributing to the Russian Federation Government’s efforts to gasify the Far East region.”

The Sakhalin-1 Consortium has supplied gas to Khabarovsk Krai since 2005 and has sales agreements in place with two major buyers: the Far East Generating Company and OAO Khabarovskkraigas.

Sakhalin-1 has provided stable gas supplies to its customers, and in some cases, delivered higher volumes when the demand increased due to harsh winter conditions.

As gas power generation facilities are launched and gas buyers continue to expand their infrastructure and capacity, the annual volume of Sakhalin-1 gas delivered to Khabarovsk Krai is expected to increase.

While it took nearly five years to reach 5 billion cubic meters in gas sales to Khabarovsk Krai from the beginning of supplies, reaching the 10 billion cubic meter milestone was accomplished in less than three years. Continued supplies under existing contracts are expected to satisfy the demand for gas of its customers in Khabarovsk Krai until 2025.

Gas produced under the Sakhalin-1 Project is supplied to heating and power stations and utility companies that provide heat and electricity to businesses and residents in Khabarovsk, Komsomolsk-on-Amur, Amursk, Nikolayevsk-on-Amur and other communities of the Khabarovsk Krai.

Sakhalin-1 gas is also consumed by large industrial enterprises such as the metal foundry, shipbuilding plant and Komsomolsk-on-Amur Aircraft Production Association named after Yu.A. Gagarin.

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LNG World News Staff, November 23, 2012; Image: Sakhalin 1