Editing Sakhalin (section)

==Economy==
{{More citations needed|section|date=August 2022}}
[[File:Sakhalin-II LNG production plant opening.jpg|thumb|At the ceremony marking the opening of a [[liquefied natural gas]] production plant built as part of the Sakhalin-2 project]]
The economy of Sakhalin relies primarily on [[Petroleum|oil]] and [[Natural gas|gas]] exports, [[coal mining]], [[forestry]], and [[Fishing industry|fishing]]. Limited quantities of [[rye]], [[wheat]], [[oat]]s, [[barley]] and [[vegetable]]s grow there, although the [[growing season]] averages less than 100 days.<ref name="autogenerated1974"/>

Following the collapse of the Soviet Union in 1991 and the subsequent [[economic liberalization]], Sakhalin has experienced an oil [[wikt:boom|boom]] with extensive petroleum-exploration and mining by most large oil [[multinational corporations]]. The oil and natural- gas reserves contain an estimated 14 [[1000000000 (number)|billion]] [[Barrel (unit)|barrels]] (2.2&nbsp;km<sup>3</sup>) of oil and 2,700&nbsp;km<sup>3</sup> (96 [[1000000000000 (number)|trillion]] cubic feet) of gas and are being developed under production-sharing agreement contracts involving international oil- companies like [[ExxonMobil]] and [[Shell plc|Shell]].

In 1996, two large consortia, [[Sakhalin-I]] and [[Sakhalin-II]], signed contracts to explore for oil and gas off the northeast coast of the island. The two consortia's pre-project estimate of costs were a combined [[United States dollar|US$]]21 billion on the two projects; costs had almost doubled to $37 billion as of September 2006, triggering Russian governmental opposition. The cost will include an estimated US$1 billion to upgrade the island's infrastructure: roads, bridges, [[waste management]] sites, airports, railways, communications systems, and ports. In addition, Sakhalin-III-through-VI are in various early stages of development.

The Sakhalin I project, managed by [[Exxon Neftegas]], completed a production-sharing agreement (PSA) between the Sakhalin I consortium, the Russian Federation, and the Sakhalin government. Russia is in the process of building a {{convert|220|km|abbr=on}} pipeline across the [[Tatar Strait]] from Sakhalin Island to [[De-Kastri terminal]] on the Russian mainland. From De-Kastri, the resource will be loaded onto tankers for transport to East Asian markets, namely Japan, South Korea and China.

A second consortium, Sakhalin Energy Investment Company Ltd (Sakhalin Energy), is managing the Sakhalin II project. It has completed the first production-sharing agreement (PSA) with the Russian Federation. Sakhalin Energy will build two 800-km pipelines running from the northeast of the island to Prigorodnoye (Prigorodnoe) in Aniva Bay at the southern end. The consortium will also build, at Prigorodnoye, the first [[liquefied natural gas]] (LNG) plant to be built in Russia. The oil and gas are also bound for East Asian markets.

Sakhalin II has come under fire from environmental groups, namely Sakhalin Environment Watch, for dumping dredging material in Aniva Bay. These groups were also worried about the offshore pipelines interfering with the migration of whales off the island. The consortium has ({{as of | 2006 | January | lc = on}}) rerouted the pipeline to avoid the whale migration. After a doubling in the projected cost, the Russian government threatened to halt the project for environmental reasons.<ref>{{cite news |url= http://www.terradaily.com/reports/Russia_Threatens_To_Halt_Sakhalin_2_Project_Unless_Shell_Cleans_Up_999.html |title= Russia Threatens To Halt Sakhalin-2 Project Unless Shell Cleans Up |date= September 26, 2006 |agency= [[Agence France-Presse]] |publisher= Terra Daily |access-date= June 17, 2010}}</ref> There have been suggestions{{by whom|date=February 2021}} that the Russian government is using the environmental issues as a pretext for obtaining a greater share of revenues from the project and/or forcing involvement by the state-controlled [[Gazprom]]. The cost overruns (at least partly due to Shell's response to environmental concerns), are reducing the share of profits flowing to the Russian treasury.<ref>{{cite news |title= Russia Halts Pipeline, Citing River Damage |last= Kramer |first= Andrew E. |newspaper= [[The New York Times]] |date= September 19, 2006 |url= https://www.nytimes.com/2006/09/19/business/worldbusiness/19shell.html |page= C.11 |access-date= June 17, 2010 }}</ref><ref>{{cite news |title= Cynical in Sakhalin |newspaper= [[Financial Times]] |location= London |date= September 26, 2006 |url= http://www.ft.com/cms/s/4d84c734-481c-11db-a42e-0000779e2340.html |archive-url= https://ghostarchive.org/archive/20221210211251/https://www.ft.com/content/4d84c734-481c-11db-a42e-0000779e2340 |archive-date= December 10, 2022 |url-access= subscription |url-status= live |access-date= October 2, 2006 }}</ref><ref>{{cite news |title= A deal is a deal |newspaper= [[The Times]] |location= London |date= September 22, 2006 |url= http://www.timesonline.co.uk/tol/comment/leading_article/article646878.ece |archive-url= https://archive.today/20070209163300/http://www.timesonline.co.uk/tol/comment/leading_article/article646878.ece |url-status= dead |archive-date= February 9, 2007 |access-date= June 17, 2010 }}</ref><ref>{{cite press release |title= CEO delivers message at Sakhalin's first major energy conference |url= http://www.sakhalinenergy.com/en/default.asp?p=channel&c=1&n=130 |publisher= [[Sakhalin Energy]] |date= September 27, 2006 |access-date= June 17, 2010 |url-status= dead |archive-url= https://web.archive.org/web/20071101062629/http://www.sakhalinenergy.com/en/default.asp?p=channel&c=1&n=130 |archive-date= November 1, 2007 }} Citations for the date: {{cite press release |title= Sakhalin II: Laying the Base for Future Arctic Developments in Russia |url= http://www.sakhalin-2.ru/en/media.asp?p=media_page&itmID=185 |publisher= Sakhalin Energy |date= September 27, 2006 |access-date= June 17, 2010 |url-status= dead |archive-url= https://web.archive.org/web/20111214120631/http://www.sakhalin-2.ru/en/media.asp?p=media_page&itmID=185 |archive-date= December 14, 2011 |df= mdy-all }} {{cite web|url= http://qa.sakhalin-2.com/en/media.asp?p=home&yr=2006|title= Media Archives 2006|publisher= Sakhalin Energy|access-date= June 17, 2010|url-status= dead|archive-url= https://web.archive.org/web/20110715225759/http://qa.sakhalin-2.com/en/media.asp?p=home&yr=2006|archive-date= July 15, 2011|df= mdy-all}}</ref>

In 2000, the oil-and-gas industry accounted for 57.5% of Sakhalin's industrial output. By 2006 it is expected{{by whom|date=February 2021}} to account for 80% of the island's industrial output. Sakhalin's economy is growing rapidly thanks to its oil-and-gas industry.

{{As of|2007|April|18}}, Gazprom had taken a 50% plus one share interest in Sakhalin II by purchasing 50% of Shell, Mitsui and Mitsubishi's shares.

In June 2021, it was announced that Russia aims to make Sakhalin Island carbon neutral by 2025.<ref>{{Cite web|date=2021-06-02|title=Russia aims to make Sakhalin island carbon neutral by 2025|url=https://www.reuters.com/business/environment/russia-aims-make-sakhalin-island-carbon-neutral-by-2025-2021-06-02/|access-date=2021-06-03|website=Reuters}}</ref>