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. Last Updated: 07/27/2016

Sakhalin-2 Project to Get Additional $1.4Bln

MOSCOW — Sakhalin Energy, a group led by Russia's Gazprom and involving Royal Dutch Shell, has secured $1.4 billion of new funding for the Sakhalin-2 liquefied natural gas (LNG) project, a news agency reported.

The money comes on top of $5.3 billion provided by the Japan Bank for International Cooperation and a consortium of international commercial banks, Interfax quoted Ian Craig, the head of the project, as saying on Thursday.

The new funds will be paid in soon, Craig told the agency.

The Sakhalin LNG project, located on the Russian Pacific island of the same name, is one of the world's largest. The Sakhalin consortium also includes Japan's Mitsui and Mitsubishi.

Gazprom bought control of the $22 billion venture in 2007 after a lengthy dispute, forcing Royal Dutch Shell — the project's former leader — and its partners to reduce their holdings.

Sakhalin Energy plans to produce 9.6 million tons of LNG per year by 2011. According to the head of Gazprom's export unit Alexander Medvedev, the energy giant aims to produce up to 17 million tons of LNG at Sakhalin-2 and its Shtokman project in the Arctic by 2020, Interfax reported.

Gazprom has also penciled in the Yamal Peninsula as a region for LNG production under a long-term development program that aims to increase Russia's share of the global market to more than 20 percent from just a few percent currently.