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Production at Russia's Sakhalin-2 LNG plant suspended

Reuters - UK Focus

(Adds details, background)

MOSCOW, March 27 (Reuters) - Liquefied natural gas (Dusseldorf: LI5.DU - news) (LNG) output at Sakhalin-2's LNG plant was suspended on Sunday after an accident at one of its production platforms, a spokeswoman for Sakhalin Energy, which operates the plant, said on Monday.

Sakhalin-2 is Russia's sole LNG plant, producing around 10 million tonnes of LNG per year. Key buyers are Japan, China and South Korea.

The spokeswoman said that on Sunday, production at Lunskaya A offshore platform was suspended after a gas leak was detected. The leak has been eliminated and some of the platform's staff evacuated.

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The spokeswoman could not say when LNG production would be restarted.

Apart from Lunskaya A, two other platforms operate as a part of the Sakhalin-2 project, which also produces oil. Sakhalin-2's LNG plant is fed by gas mainly produced at Lunskaya A platform.

Sakhalin-2 shareholders are Russia's Gazprom, Royal Dutch Shell (LSE: 0LN9.L - news) and Japan's Mitsui and Mitsubishi (LSE: 7035.L - news) . (Reporting by Oksana Kobzeva; writing by Katya Golubkova; editing by Maria Kiselyova and Susan Thomas)