The Rising Influence of Rising Affluence

[DewDiligence]

Shell commits to Sakhalin-2 LNG expansion despite contentious project history:

http://www.bloomberg.com/news/2014-04-18/shell-plans-russian-expansion-with-putin-support-for-sakhalin-2.html

Royal Dutch Shell Plc plans to expand the Sakhalin-2 oil and gas project in Russia’s Far East, the country’s only producer of liquefied natural gas, as it seeks to boost its presence in the Asian energy market. Shell Chief Executive Officer Ben van Beurden won a promise of support for the plan from President Vladimir Putin today at a meeting at the Russian leader’s residence near Moscow.

…In December,…Van Beurden and Shell’s then-CEO Peter Voser discussed the addition of a third LNG train at Sakhalin [with Gazprom’s CEO], raising output from 10 million metric tons to as much as 15 million tons.

Mitsubishi Corp. and Mitsui & Co. are also partners in the project on Sakhalin Island, north of Japan. Shell, Mitsui and Mitsubishi sold half of Sakhalin-2…to Gazprom for $7.45 billion in 2007 after the project was hounded by environmental regulators.