The Guardian: Shell gas and hot air: This project appears to have unstoppable momentum, despite the bank's president, Jean Lemierre, insisting yesterday that the 120-day consultation process is robust and genuine.”: “…Shell is frantic to bump up its reserves, having "lost" 25% last year.:”: “Oil companies might become extinct when the oil and gas runs out mid-century, but Western Pacific whales could be gone a lot sooner.”: Thursday 15 December 2005

The European Bank for Reconstruction and Development confirmed news here yesterday that it is minded to push ahead with its backing for the controversial Shell project to develop gas off Sakhalin Island in the east of Russia. This project appears to have unstoppable momentum, despite the bank's president, Jean Lemierre, insisting yesterday that the 120-day consultation process is robust and genuine. No final decision will be taken on the Sakhalin 2 scheme until the bank's policies on the environment and social impact are assessed and complied with, he argues. But there are already difficulties. The platform for drawing gas out of the seabed is already being built - seven kilometres from the feeding ground for the last 100 Western Pacific whales.

Shell and its partner Mitsubishi have rerouted pipelines and set up a panel of experts to monitor the project and mammals. But one member has resigned in protest at his views being disregarded. Russia is desperate to start the scheme as its oil and gas output stutters, while Shell is frantic to bump up its reserves, having "lost" 25% last year. Meanwhile, the costs associated with Sakhalin have doubled. But the cost of approval is also high with the credibility of the EBRD at stake. Oil companies might become extinct when the oil and gas runs out mid-century, but Western Pacific whales could be gone a lot sooner. 

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