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Russia to Divert Sakhalin-2 Volumes to Domestic Market

LNG

Russian is planning to use the Sakhalin-2 LNG volumes for domestic supply, squeezing spot exports, according to Energy Intelligence.

  • Russia wants the 11m mtpa Sakhlain-2 project to supply around 750 mcm/y to the Russian Far-East region of Kamchatka.
  • This would take out around 0.6m mtpa of LNG from the spot market in Asia.
  • The Russian government expects a domestic supply agreement to be signed in Q1 2024.
  • Term contracts from Sakhalin-2 that are still executed currently comprise 7.245m mtpa, mainly sent to Japan. The remaining volumes are sold on spot, including to China which has boosted its spot buying from Sakhalin-2.

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