RusEnergy

16.02.2005 13:13 MSK MosNews - Sakhalin Energy, the joint venture which manages the Sakhalin 2 oil and gas project in Russia’s Far East, has won an auction to supply the Republic of Korea with 1.5 million tons of liquefied natural gas per year, the Korean Ministry of Commerce, Industry and Energy said on Wednesday, Feb. 16. The deliveries may be increased by an additional 500,000 tons of gas per year at a later date.

Sakhalin Energy’s press centre, quoted by Itar-Tass, referred to this event as yet another major achievement of the company, which is developing shelf oil and gas projects off the coast of Sakhalin Island. A contract to deliver gas has been signed with Korea Gas Corporation (KOGAS). Gas is to be delivered over 20 years and the first batch of gas is to be shipped in early 2008.

Sakhalin Energy concluded an agreement to deliver 70 percent of the liquefied gas to be produced at the liquefied gas plant in the village of Prigorodnyy in southern Sakhalin. Its capacity is 9.6 million tons of gas per year. As of today, 55 percent of the design and construction work has been completed at the enterprise. Earlier, as MosNews reported, Sakhalin Energy concluded agreements to deliver liquefied gas to Japan and North America.

The Sakhalin 2 project is operated by a subsidiary of the international oil major Royal Dutch/Shell and by two Japanese corporations â€” Mitsui and Mitsubisi. The companies are developing the Piltun Astokhskoye (PA) oil field and the Lunskoye gas field in the Sea of Okhotsk within the framework of the project. The said fields are estimated to have deposits of 600 million tons of oil and 700 billion cubic meters of natural gas.