ExxonMobil Suspends Russian Far East LNG Project

ExxonMobil Suspends Russian Far East LNG Project

ExxonMobil has suspended its liquefied natural gas project in Russia’s Far East after the company announced plans to leave the country following Western sanctions, Interfax news agency quoted a Russian governor on Monday.

Due to sanctions on Russia over Ukraine, ExxonMobil said last month it would exit its Russian oil and gas operations, valued at more than $4 billion, and halt new investments in the country.

With that decision, Exxon will no longer manage large oil and gas production facilities on Sakhalin Island in Russia’s Far East, and the fate of a multi-billion dollar LNG facility will also be at risk.

As part of the Sakhalin-1 consortium led by Russian energy giant Rosneft, Exxon planned to build the Far East Liquefied Natural Gas (LNG) project with an annual capacity of over 6 million tonnes.

In a statement to Interfax, Khabarovsk’s governor Mikhail Degtyaryov said, “The Americans, Exxon, which announced the project at De Kastri port with the pipeline from Sakhalin, have frozen the project until further notice.”

 

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