Press Release Back Number(2006)

Basic agreement concluded to buy liquefied natural gas from the Sakhalin II Project

July 12, 2006
Chubu Electric Power Co., Inc.

Today, Chubu Electric Power has finalized a basic agreement with the Sakhalin Energy Investment Company Ltd to purchase liquefied natural gas (LNG) from the Sakhalin II Project.


The Sakhalin II Project brings natural gas from a gas field offshore the island of Sakhalin of the Russian Federation, and liquefies the gas for export at a base in Prigorodnoye located on the south of the island. Yearly capacity of the project is estimated at 9.6 million tons.


This marks the first LNG project for the Russian Federation, and will allow Chubu Electric Power to diversify and further stabilize sources of LNG by buying gas from the project, which is located extremely close to Japan.


An outline of the basic agreement is as follows, and deliberations are scheduled to engage in a purchased contract in the future.

(Basic agreement outline)


  • • Seller:Sakhalin Energy Investment Ltd.
  • • Buyer:CHUBU Electric Power Co., Inc.
  • • Contract period:15 years starting April 2011
  • • Contract amount:Approx. 500,000 tons / year
  • • Terms of delivery:Ex-ship

Delivery terms in which seller arranges transport to buyers receiving location.



(Reference)

(Sakhalin Energy Investment Ltd.)


  • • Company name:Sakhalin Energy Investment Company Ltd.
  • • Established: April, 1994
  • • Headquarters:Yuzhno-Sakhalinsk, Sakhalin state, Russian Federation
  • • Chief Executive Officer: Ian CRAIG
  • • Capital formation:
    Shell Sakhalin Holdings B.V.(subsidiary of Royal Dutch Shell) 55%
    Mitsui Sakhalin Holdings B.V.(subsidiary of Mitsui & Co., LTD.) 25%
    Diamond Gas Sakhalin B.V.(subsidiary of Mitsubishi Corporation) 20%

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