Regional LNG: TEPCO to buy more LNG from Shell-led Sakhalin 2: Report
Monday, November 8 2004 - 01:25 AM WIB
Tokyo Electric Power Co. (TEPCO), Japan's biggest utility, said on Friday it would buy more liquefied natural gas (LNG) than earlier planned from the Shell-led Sakhalin 2 gas and oil project in Russia's Far East, Reuters reported.
TEPCO has signed a final agreement with Sakhalin Energy Investment Co., the seller of the LNG produced in the project, to buy 1.5 million tons of LNG a year over 22 years, the utility said in a statement.
TEPCO had earlier planned to buy 1.2 million tons a year from the project, a company spokesman said.
The Sakhalin 2 project is expected to produce 9.6 million tons of LNG annually and start shipping in 2007. It has estimated recoverable gas reserves of 500 billion cubic meters (17.66 trillion cu ft).
Royal/Dutch Shell Group owns 55 percent of Sakhalin Energy Investment. Japanese trading houses Mitsui & Co. and Mitsubishi Corp. owns 25 percent and 20 percent respectively. (*)