US sanctions hit Gazprom’s LNG plans

摘要

US sanctions targeting state-controlled Gazprom’s South Kirinsky gas and condensate field off Russia’s Sakhalin island could undermine the expansion of the 10.7mn t/yr Sakhalin 2 LNG plant. The US declared South Kirinsky off limits to US companies on 7 August, because “it is reported to contain substantial reserves of oil in addition to gas”. This is the first time that the US has targeted a specific field. The sanctions prohibit the supply of equipment and technology to offshore arctic, deepwater and shale projects in Russia. Parts of South Kirinsky fall within the US definition of deep water - greater than 150m.