10 June 2004 08:52
SAKHALIN ENERGY TO SIGN 3 MORE LNG CONTRACTS
YUZHNO-SAKHALINSK. June 10 (Interfax) - Sakhalin Energy, the operator of the Sakhalin-2 project, is holding talks
with three Japanese companies on contracts for liquefied-natural gas (LNG) deliveries, Sakhalin Region Governor Ivan
Malakhov said at a press conference.
The company has already signed preliminary agreements on delivering some 3 million tonnes of LNG annually: with Tokyo
Gas, for 1.1 million tonnes, Toho Gas, for 0.3 million tonnes and Tokyo Electric, for 1.5 million tonnes, Malakhov
said.
In addition, the company is also holding talks with several power
companies from the United States, Mexico, China and South Korea,
Sakhalin Energy announced on June 9 that it had signed a contract Japan's Kyushu Electric Power Company, Inc.
The contract stipulates that 0.5 million tonnes of LNG will be delivered annually for more than 20 years, starting in
2009.
Sakhalin Energy Commercial Director Andy Calitz said.
The company needs four tankers with deadweight of 150,000 tonnes each to transport LNG to buyers. It will take an
average of 16 hours to load each tanker at the Prigorodnoye terminal and another three days to deliver LNG to the gas
markets of neighboring countries. One such tanker can carry up to 3 million tonnes of LNG a year, Calitz said.
He said that it is still unclear whether the tankers will be rented or if Sakhalin Energy will establish its own
fleet.
Sakhalin Energy is owned by Royal Dutch/Shell (55%), Japan's Mitsui (25%) and Mitsubishi (20%).
The Sakhalin-2 project involves the development of the Piltun- Astokhskoye and Lunskoye fields off the Sakhalin
coast. Total reserves of oil and gas at these deposits amount to 185 million tonnes and 800 billion cubic meters
respectively.
[Interfax] |
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