What sanctions, Russia’s energy giant Rosneft will build a new liquefied natural gas (LNG) plant in partnership with US company Exxon Mobil, Japan’s SODECO and India’s ONGC Videsh.
The estimated $15 billion cost would be spread among the four firms, according to the news agency’s information. Rosneft, Exxon, SODECO and ONGC Videsh are all partners in the Sakhalin-1 LNG project.
The new plant was intended to be built by Rosneft and Exxon, but the project was later joined by Indian and Japanese firms.
Sakhalin-1 is led by Exxon with a 30% stake. Another 30% belongs to SODECO, while Rosneft and ONGC Videsh both own 20% each. LNG is not a subject of the anti-Russian sanctions, but Russian companies are facing problems with getting loans abroad.
Russia has an ambitious plan doubling its global LNG market share to 20% in the next decade. The country has two other LNG plants – Novatek’s Yamal LNG and Gazprom’s Sakhalin-2.
The Russian Direct Investment Fund (RDIF) announced Saudi Arabia is ready to invest $5 billion in the Arctic LNG 2 project. Novatek is planning to sell up to 40% of the project to foreign partners.
Last year, Russia opened the Yamal LNG project. Costing $27 billion, the plant will have three production lines and a total capacity of 16.5 million tons of LNG per year. Almost 96% of the Yamal LNG plant’s production has already been contracted.
You cannot sanction half the globe, without incurring losses as well. Washington’s bluff is being called, the question being will it fold or draw a weapon to force an outcome.
Very likely it is the latter, as the sociopathic elite cannot change its exceptionalist outlook and hegemonic behavior.
Russia Insider / ABC Flash Point Energy News 2018.