Canadian Press: Shell strikes US$6B deal to ship Russian liquefied gas to North America
“The deal is the first that would funnel Russian LNG to the United States, whose demand for natural gas is surging as domestic supply dwindles.”
Thursday, October 14, 2004
MOSCOW (CP) – A consortium led by Royal Dutch/Shell Group that is developing gas reserves off Russia’s Sakhalin Island said Thursday it has struck a $6-billion-US deal to supply liquefied natural gas, or LNG, to energy-hungry North America.
Sakhalin Energy Investment Ltd., operator of the Sakhalin-2 project, said it signed an agreement to ship 37 million tonnes of LNG to a regasification terminal in Mexico.
Shell, which is building the Energia Costa Azul terminal in Baja California with California’s Sempra Energy, is the buyer of the gas.
The deal is the first that would funnel Russian LNG to the United States, whose demand for natural gas is surging as domestic supply dwindles.
“There is considerable enthusiasm in the marketplace for this new source of energy from Sakhalin,” Andrew Calitz, commercial director of Sakhalin Energy, told a conference call.
Under the agreement, Sakhalin Energy, whose partners also include Japan’s Mitsui & Co. Ltd. and Mitsubishi Corp., will eventually send 1.6 million tonnes of LNG, and shipments will begin in 2008.
Sakhalin Energy’s LNG production capacity is set to reach 9.6 million tonnes a year. The agreement with Shell brings annual contracted volumes to 5 million tonnes, mostly to east Asian countries.
Environmentalists assert that Sakhalin Energy’s activities disturb a nearly extinct species of grey whales at their feeding grounds off the shores of the island.
In response, the consortium has commissioned an independent panel to review how effective its measures are in mitigating impact on whales during the project’s second phase.
Sakhalin-2 is one of three projects being developed under production-sharing agreements, or PSAs, in Russia. These agreements provide for stable tax terms over the life of the project, as well as extensive government supervision.
On Tuesday, Calgary-based Petro-Canada (TSX:PCA) signed a memorandum of understanding with Moscow-based gas giant Gazprom to investigate building a $2 billion project to liquefy Russian gas and export the fuel by tanker to North America.
The liquefaction plant, estimated to cost up to $1.5 billion US, is planned for the Russian port city of St. Petersburg, formerly Leningrad. It would be built in conjunction with a $500 million US re-gasification plant planned for Gros Cacouna in northeastern Quebec.
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
