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Shareholders in the Sakhalin I oil and gas project and regional authorities have differing opinions on gas transportation methods. Governor Ivan Malakhov supports transporting liquefied natural gas (LNG) by sea, arguing it is more cost-effective than constructing a pipeline to China, which shareholders favor.

The project, led by Exxon Neftegas Limited, is projected to generate $52.2 billion for the Russian budget by 2054. Malakhov noted that existing pipeline infrastructure mitigates additional costs, making sea transport a viable option.