ExxonMobil suspends its LNG project in Russia's Far East

ExxonMobil has suspended its liquefied natural gas project in Russia's Far East, Interfax news agency quoted a Russian governor as saying on April 4, after the firm announced plans to quit the country following Western sanctions, Report informs referring to Reuters.

"The project, which the Americans - Exxon - had announced at the port of De Kastri with the pipe from Sakhalin, it is frozen until further notice from them," Interfax quoted the Khabarovsk region's governor Mikhail Degtyaryov as saying.

"Why has it been done? I am astonished, this is a shot in the foot."

Exxon had planned to build the Far East Liquefied Natural Gas (LNG) project with annual capacity of more than 6 million tons as part of Sakhalin-1 consortium led by Russian energy giant Rosneft.

At the same time, Prime Minister Fumio Kishida said that Japan will not abandon its stake in the Sakhalin-2 liquefied natural gas (LNG) project in Russia as it is essential to energy security.

"Japan has a stake in Sakhalin 2, which is contributing to securing long-term, stable and low-priced supply of LNG. It is an extremely important project for Japan's energy security," Kishida told parliament.

ExxonMobil said last month it would exit its Russian oil and gas operations, which it had valued at more than $4 billion, and halt new investment due to sanctions on Russia over Ukraine.