17 May 2003 00:50
Chiyoda and Toyo win Russia deal
Japanese companies Chiyoda and Toyo Engineering and their Russian partners
have won a Y300bn (Dollars 2.6bn) contract from Sakhalin Energy to build in
Russia the world's largest liquefied natural gas plant.
The consortium will procure parts and design and construct the LNG plant with
an annual capacity of 9.6m tonnes at the southern tip of Sakhalin Island, in
Russia's Far East and close to northern Japan.
The deal is likely to be part of a wave of contracts from Sakhalin Energy,
which operates the Sakhalin 2 project for a consortium of Royal Dutch/Shell,
the Anglo-Dutch oil group, and Japanese trading companies Mitusi and
Mitsubishi.
On Thursday, the three companies gave the go-ahead to Sakhalin Energy to
unlock Dollars 10bn of investment to develop gas production from its offshore
field.
Sakhalin Energy has been producing oil for four years from the island, but
needed to find LNG buyers and to win Russian government approval for
technical issues before Shell, Mitsui and Mitsubishi could approve the second
phase of investment involving LNG.
Tokyo Gas this week agreed to purchase 1.1m tonnes of LNG a year from 2007,
while Tokyo Electric Power, Japan's largest electricity utility, is
close to a deal.
Chiyoda, Japan's leading plant engineering company, and Toyo have strong
links with Mitsui and Mitsubishi. Chiyoda, Japan's leading plant
engineering company, is 10.7 per cent owned by Mitsubishi. Toyo is 15 per
cent owned by Mitsui. Shares in the two companies rose sharply yesterday.
Toyo's were up by 17.1 per cent to Y240, and Chiyoda's - one of the
10 most heavily traded stocks in Tokyo - by 4.5 per cent to Y487.
The consortium includes Russian companies KhinEnergo and Nipigaspererabotka
and beat rival bids by Bouygues Offshore, France's Technip-Coflexip and
Foster Wheeler of the UK. www.ft.com/energy
[FTI [The Financial Times]] |
RUSSIA IN FACTS
