Russia has announced plans to start gas production at the new Sakhalin-3 project in 2028 to supply China and to cover domestic needs.

Source: Reuters

Details: Sakhalin governor Valery Limarenko has said that energy giant Gazprom and the regional authorities are working on a plant in southern Sakhalin to process gas condensate into jet fuel, diesel and naphtha.

Facing a breakdown in relations with the West caused by its war against Ukraine, Russia has been redirecting its petroleum and gas exports – a key source of budget revenue – from Europe to Asia.

One of the new pipelines to China, designed to transport gas along the Far Eastern route from Sakhalin, is due to open in 2027. Its planned capacity has been increased from an initial 10 to 12 billion cubic metres of gas per year.

Quote from Limarenko: “We link the industry’s prospects to the implementation of the Sakhalin-3 project. Its launch is scheduled for 2028. This gas is expected to be exported to China and also used for the needs of the Far East.”

More details: The Sakhalin-3 project includes the Yuzhno-Kirinskoye field, which the United States placed under sanctions in 2015 over Moscow’s role in the events in Ukraine. The field is part of the Kirinsky block in the Sea of Okhotsk and contains both gas and petroleum. The sanctions cover the exploration and extraction of oil and gas on Russia’s continental shelf.

Gazprom has estimated reserves at the Yuzhno-Kirinskoye field at 711.2 billion cubic metres of natural gas, 111.5 million tonnes of gas condensate and 4.1 million tonnes of petroleum.

Background: In July 2025, it emerged that China is creating a system for the regular import of liquefied natural gas (LNG) from a Russian project that is under US sanctions.

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