Gazprom and KOGAS highlight success of LNG supply cooperation
RELEASE
Release
Vladivostok hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Lee Seung-hun, CEO of KOGAS as part of the Eastern Economic Forum.
The meeting participants addressed the issues of cooperation in the energy sector. The parties highly appreciated the cooperation between the companies in LNG supplies to Korea from the Sakhalin II project. It was pointed out that expanding LNG production in Sakhalin opened up the way for considerably boosting natural gas export from Russia to the Asia-Pacific countries, particularly, to Korea.
Background
The major activities of KOGAS include construction and operation of LNG receiving terminals and gas distribution grids, implementation of international gas projects as well as research & development activities in the gas industry.
As part of Sakhalin II, Russia’s first LNG plant with the annual capacity of 9.6 million tons of LNG was commissioned in 2009. Sakhalin Energy is the Sakhalin II project operator with the ownership distributed among Gazprom (50 per cent plus one share), Shell (27.5 per cent minus one share), Mitsui (12.5 per cent) and Mitsubishi (10 per cent). The plant produced 10.7 million tons of LNG in 2014.
In 2005 Sakhalin Energy and KOGAS signed a contract for LNG supply from the Sakhalin II project. The contract provides for a substantial volume of supply – 1.5 million tons of LNG a year, which accounts for over 15 per cent of the total LNG volume contracted from the Sakhalin II project.