Lloyds List: Sakhalin II seeks six ships to cover exports: “The Shell-led consortium needs two more LNG carriers to transport the hydrocarbon product from its $20bn Sakhalin project to US regasification facilities from 2008.”: Thursday Dec 01, 2005

Martyn Wingrove

SAKHALIN Energy Investment is close to chartering two more liquefied natural gas carriers and four crude oil tankers to cover exports from the Sakhalin II project.

The Shell-led consortium needs two more LNG carriers to transport the hydrocarbon product from its $20bn Sakhalin project to US regasification facilities from 2008.

According to Ian Craig, chief executive of Sakhalin Energy, the group is close to finalising the contract negotiations for these two LNG carriers.

'Three LNG carriers are already committed and under construction, and we are looking for two more for short-term charter to take LNG to US markets,' said Mr Craig at IBC Energy's Sakhalin Oil ' Gas conference yesterday.

He said the group was tendering for four oil tankers on long-term charter, which will be used to load crude at the Prigorodnoye terminal on the southern tip of Sakhalin Island.

Sakhalin Energy, which also includes Mitsui and Mitsubishi, is developing two oil and gas fields off eastern Russia with three offshore platforms, an onshore processing plant and terminals for LNG and oil export at Aniva Bay.

All year-round oil and LNG exports are expected to begin in mid-2008 after the platforms and pipelines are commissioned.

'We have completed more than 60% of the project and sold 75% of the LNG for the two trains,' said Mr Craig.

'Around 900 km of the pipelines have been welded and we completed installing the concrete gravity base structures of the platforms this summer.'

Phase one of Sakhalin II has exported more than 12m barrels of crude to date. 

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