Sakhalin Energy Investment Company Ltd. (SEIC), the joint venture company for the Sakhalin II Project, owned by OAO Gazprom (Gazprom), Royal Dutch Shell plc (Shell), Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation (Mitsubishi) with Mitsui holding a 12.5% stake, marked the commencement of liquefied natural gas (LNG) delivery from SEIC's LNG plant, at port Prigorodnoye, Sakhalin Oblast of Russian Federation. This first cargo of LNG to Japan, will be taken by two of their foundation customers - Tokyo Gas Co., Ltd. and Tokyo Electric Power Company, Inc.
LNG production facilities of the Sakhalin II Project is composed of 2 LNG trains, with a total LNG production of 9.6million tonnes per annum. Approximately 60% of the LNG produced from the Sakhalin II Project will be supplied to customers in Japan.
Commencement of LNG delivery from the Sakhalin II Project will contribute to the stability of energy supply and diversification of energy sources for the Asia-Pacific region as a short-distance supply source from Japan as well as marking the first LNG delivery from the Russian Federation.
Mitsui, as a shareholder of SEIC, regards the commencement of LNG delivery, along with the commencement of year round oil production marked in December 2008, as a significant milestone of the Sakhalin II Project, and will continue to support SEIC towards establishing stable oil and LNG supply from the project.
Note for Editors
Sakhalin II Project
Sakhalin is a world-class oil and gas province, with estimated resources of some 45 billion barrels oil equivalent (boe). Sakhalin II is the largest integrated oil and gas project in the world, with total resources of some 4 billion boe.
Sakhalin Energy Investment Company Ltd. (SEIC) is the joint venture company established for the Sakhalin II Project. (Shareholders of SEIC are OAO Gazprom (50%+1 share), Royal Dutch Shell plc (27.5%-1 share), Mitsui & Co., Ltd. (12.5%) and Mitsubishi Corporation (10%)).
As Phase-1 of the project, SEIC commenced half year summer oil production which was limited to about six months of the ice-free season. As Phase-2 of the project, in December 2008, SEIC marked the commencement of year-round oil export from its new oil export terminal in Progorodonoye, located in the south of Sakhalin Island, and recently just marked the commencement of LNG delivery.
Peak oil production is planned to be 150,000 barrels per day, and LNG production is planned to be 9.6 million tonnes per annum. Approximately 60% of the LNG is planned to go to Japan and the remainder to South Korea and North America.
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