World's major liquefied gas plant to be built in Sakhalin

The construction of the world's major and Russian first plant for liquefying natural gas (SPG) began in the Prigorodnoye settlement, Korsakovsky district of the Sakhalin region.

RIA Novosti was told in the press centre of the regional administration that the construction was stipulated in the international Sakhalin-2 project. The Sakhalin-Energy company is its operator.

The laying of two oil and gas pipelines, the construction of the plant and other facilities of the infrastructure within the framework of the second stage of the Sakhalin-2 project will cost almost 10 billion US dollars. More than 5,000 Russian and foreign specialists will take part in implementing this plan.

The Sakhalin-Energy company signed a contract to the sum of 1.2 billion US dollars for the construction in the island of two oil and gas pipelines, stretching for 800 km each.

The winner of the international tender - the consortium of Russian and foreign enterprises - will begin implementing the project. It includes Russian companies Starstroi and LUKOILneftegazstroi, and European companies Saipem and AMEK.

The oil and gas extracted on the sea shelf of the northeastern coast of Sakhalin (Piltun-Astokh and Lunsk deposits), will be delivered by the pipelines to the coastal technological complex and then to the terminal of oil shipment and to the plant for the production of liquefied natural gas.

The laying of the oil pipeline is expected to be completed by the end of 2005, and of gas pipeline - in 2006.

The Japanese energy companies will be the major buyers of the Sakhalin gas. At the first stage it will be exported in tankers.

A gas pipeline from Sakhalin to the neighbouring Japanese Hokkaido island and then to Tokyo is expected to be built in the future.