Exxon Mobil Suspends Russian Far East LNG Project

(Reuters) — Exxon Mobil has suspended its LNG project in Russia's Far East, Interfax news agency quoted a Russian governor as saying on Monday, after the firm announced plans to quit the country following Western sanctions.

Exxon Mobil 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. 

The decision would see Exxon pull out of managing large oil and gas production facilities on Sakhalin Island in Russia's Far East and put the fate of a proposed multibillion-dollar LNG facility there in doubt.

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

"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 in Moscow referred Reuters to the company's announcement about its decision to leave business in Russia on March 1.

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