|
YUZHNO-SAKHALINSK, March 12. The company Sakhalin Energy has as part of its
Sakhalin II priject concluded an agreement with Toho Gas, one of Japan's largest
gas distribution companies, to provide it with liquefied gas, according to a statement
issued to Rosbalt by the press office of Sakhalin Gas.
According to the signed document, the volume of gas to be delivered amounts to
0.3 million tons a year for approximately the next 23 years. In this way, the total volume
of gas previously purchased as part of the Sakhalin II project (concluded in four
agreements) now totals 3.1 million tons for the next 20 or more years.
According to the announcement, the deal further establishes Sakhalin as a new strategic
provider of natural gas to Japan, and allows the Asia Pacific region to be considered a
major new market for Russian energy providers.
The d!
eal also confirms the emergence on the international gas market of a major new
participant in the form of the Russian Federation and Sakhalin Energy.
Today, the heads of the named companies signed the fundamental terms of the
!
agreement regarding the long-term delivery of liquefied natural gas, whereby
the first deliveries are scheduled to begin in 2010. The sides are continuing their
negotiations with the goal of signing an agreement for the sale and purchase of
liquefied natural gas.
Two major events in the operation of Sakhalin Energy are associated with the
Toho Gas deal. At the end of December last year, Russian regulatory
authorities approved a feasibility study for the construction phase of the
Sakhalin II project, and in January work began on the construction of an
above-ground oil and gas pipeline system, whereby offshore gas from the
northern part of the island will be transported south to a liquefied natural gas plant.
Construction of the factory has already begun in Prigorodnoe, in the south of
Sakhalin. It will become the first liquefied natural gas factory constructed in Russia.
Once fully operational, it will be able to deliver 9.6 million tons of gas a year.
The factory will consist of two production lines for the liquefication of natural gas,
each capable of producing 4.8 million tons per year. To date, it is the largest
production line for liquefied natural gas in the world.
The Sakhalin II project has been worked out on the basis of an agreement
regarding the division of liquefied natural gas production. Recoverable
reserves from the Pultin-Astohskovo and Lunskovo fields involved in the
project consist of 185 million tons of oil and 800 billion cubic meters of gas. Recovery
of oil from the project began in summer 1999.
Shareholders in Sakhalin Energy Investment include the British-Dutch Royal
Dutch/Shell (55%), the Japanese company Mitsui (25%), and Mitsubishi (20%).
The joint-stock company, Sovkomflot, a wholly government-owned company, is
responsible for all sea transport
See also:
Production Sharing Agreements (PSA)
|
