ExxonMobil has suspended its Far Eastern LNG project in the port of De-Kastri, Russia, said Interfax.
This was announced on the air of one of the Russian radio stations by the governor of the Khabarovsk Territory Mikhail Degtyarev. "The project that the Americans announced - Exxon - in the port of De-Kastri with a pipe from Sakhalin, it is frozen," he said.
Exxon Neftegaz Limited is a "daughter" of ExxonMobil, which is the operator of the Sakhalin-1 project. In February, the company launched a tender campaign to select contractors for the Far Eastern LNG project. The company announced a search for contractors to assess the quality of building materials, as well as a search for manufacturers of reinforced concrete products.
According to the project, the terminal was supposed to have a capacity of 6.2 million tons per year in the part of the Sakhalin-1 consortium. The cost of the Far Eastern LNG project is estimated at USD4.2 billion. The launch was planned for 2027-2028.
Oil company Exxon Mobil suspended oil and gas production in Russia, the company said in early March. This decision left the fate of the LNG plant, which was being built in the Khabarovsk Territory, unclear.
As per MRC, ExxonMobil announced that construction of the new linear alpha olefins (LAO) manufacturing unit at its Baytown, Texas, integrated petrochemical complex is progressing and targeting commercial start up in mid-2023. When fully operational, the new facility will have the capacity to produce approximately 350,000 metric tons of LAO annually.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC''s ScanPlast report, Russia's estimated PE consumption totalled 2,487,450 tonnes in 2021, up by 13% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market totalled 1,494.280 tonnes, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas shipments of PP random copolymers decreased significantly.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
mrchub.com