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Itar-Tass: Sakhalin Energy signs contract on liquefied gas supplies to Japan

Sakhalin Energy signs contract on liquefied gas supplies to Japan

13.05.2006, 06.30

YUZHNO-SAKHALINSK, May 13 (Itar-Tass) — The company Sakhalin Energy that is developing oil/gas deposits on the Sakhalin shelf has signed a contract with the Japanese company Tohoku Electric Power on the supplies of 420,000 tonnes of liquefied gas a year to Japan. The supplies will be made for the next 20 years beginning from 2010 from a natural gas liquefaction plant under construction in Prigorodnoye, southern Sakhalin. The contract was signed in Yuzhno-Sakhalinsk on Friday.

The capacity of the plant will make 9.6 million tonnes of liquefied gas a year, the Sakhalin Energy press service said on Saturday. The plant has been built by 70 percent, but the greater part of the plant’s produce will be supplied under the already signed contracts. Sakhalin Energy signed contracts on gas supplies with energy companies of Japan, the United States and South Korea.

The company Sakhalin Energy is an operator of the Sakhalin-2 project. According to specialists, this project is the largest complex oil/gas project in the world. Sakhalin Energy began supplying oil from the Sakhalin shelf on the international market in 1999 and produced about ten million tonnes of oil for the period. Companies from Japan, the US, Taiwan, the Philippines, China and South Korea buy oil produced by Sakhalin Energy. Sakhalin Energy is planning to launch liquefied gas supplies on the world market in 2007-2008.

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