Regional LNG: Toho Gas to buy Sakhalin-project LNG
Tuesday, June 7 2005 - 06:52 AM WIB
Japanese major gas utility Toho Gas Co. has concluded an agreement to buy up to 500,000 tons of liquefied natural gas (LNG) annually from the operator of the Sakhalin 2 gas and oil project, The Japan Times reported Tuesday.
The deal covers 24 years beginning in 2009.
The contract with Sakhalin Energy Investment, the operator of the project off the island of Sakhalin in the Russian Far East, calls for annual purchases of 60,000 tons during the initial four-year period starting in April 2009 and goes up to 500,000 tons during the subsequent 20-year period, it said.
Although the utility had struck a basic accord in March 2004 to start procuring LNG in April 2010, it has decided to bring forward the start of LNG imports by one year because of growing LNG demand in the Nagoya metropolitan area and surrounding districts, Toho officials said. (*)