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Page added on September 1, 2006

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Russia tells Shell to review pipelines

Russia’s environmental watchdog, which has already ordered to Royal Dutch Shell to stop work on onshore pipelines on Sakhalin, said on Wednesday the group needed to redraw the plan.

“Onshore pipeline construction can be resumed only after the project is reworked, that it meets all environmental requirements and is discussed with scientists and independent environmental organisations,” the resources ministry said in a statement.
Industry analysts say the halt, which came as the project is already 75 percent completed, may cause further delays to Shell $20 billion (10.5 billion pound) liquefied natural gas project off Russia’s remote Pacific island.

They also note that increased pressure from Russia comes amid attempts by gas monopoly Gazprom to secure 25 percent in the project.

Scotsman



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