Sakhalin Energy, the operator of Sakhalin-2 project, had signed a contract with Japanese utility company Hiroshima Gas
Sakhalin Energy, the operator of Sakhalin-2 project, had signed a contract with Japanese utility company Hiroshima Gas for the delivery of 0.21 mln tons of liquefied natural gas per year over 20 years.
The Russian consortium's Sakhalin-2 project, situated on the southern tip of Sakhalin island in Russia's Far East, will be the first to produce LNG in Russia.
Sakhalin Energy and Hiroshima Gas are still drawing up a formal sale and purchase agreement but deliveries are expected to start in 2008, the Russian company said in a statement.
Hiroshima Gas is planning to transport the LNG on small ice-breaker vessels, with 20,000-cubic-metre capacity, to its Hatsukaichi terminal on the island of Honshu, Japan.
The Anglo-Dutch group Royal Dutch/Shell holds a 55 pct stake in Sakhalin Energy, while Japanese companies Mitsui and Mitsubishi hold 25 pct and 20 pct, respectively.
