Shell Gas & Power Executive Vice President Asia, Peter de Wit, said this was the eighth sales agreement to be signed between Sakhalin and a major Japanese utility. Toho Gas has decided to take an additional 0.2 million tons per annum (mtpa) for 20 years.
"Shell is proud that Russia's first LNG plant continues to provide competitive terms to customers in a growing but ever tightening market. As global LNG demand increases, Sakhalin has become an increasingly pivotal future LNG supplier to Asia and the West Coast of North America, and we look forward to continued sales success in the near future for the remaining unsold volumes from the first two trains. The deal also reinforces Japan's position as the world's largest LNG market", said de Wit.
Total sales volumes for Sakhalin II, which commences LNG deliveries to customers at the end of 2007, now stand at 7.3 mtpa, which represents over 75% of total plant capacity from the first two trains.
Sakhalin II has enjoyed a number of major marketing highlights over the past 12 months, including:
Peter de Wit concluded: "We congratulate Sakhalin Energy and our joint venture partners, Mitsui and Mitsubishi on today's agreement, we welcome this new agreement with Toho Gas, and we look forward to further building on Sakhalin's success story over the coming weeks and months."
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