The spring of 2003 saw a number of key announcements relating to the Sakhalin oil and gas projects. After considerable speculation, the Sakhalin Energy Investment Company announced that it was to go ahead with a $10 billion investment to construct Russia's first liquefied natural gas plant to export gas to Northeast Asia. This article examines the wider context of Russia's potential as an oil and gas supplier to Northeast Asia. It considers the prospects for the numerous gas pipeline projects that are being proposed. It then focuses in detail on the prospects for oil and gas development offshore of Sakhalin. The background to the current projects is presented and the composition and current status of the major projects reviewed. The article then examines the processes that are helping to shape the projects and places Sakhalin with the wider debate of the impact of globalisation upon Russia's economic transformation. The paper concludes by assessing the prospects for the future.