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March 04. 2009
Osaka Gas has signed the Sale and Purchase Agreement (SPA) for the purchase of LNG from Sakhalin II Project. The agreement has been entered into between Osaka Gas as Buyer and Sakhalin Energy Investment Company as Seller for LNG to be supplied from the project.
The terms of the SPA have been agreed by the parties following the negotiations based on the Heads of Agreement signed on February 8, 2007.
It will be the first experience for Osaka Gas to purchase LNG from Russia , which will be the seventh supplier for Osaka Gas on a long-term basis.
Sakhalin II Project will supply LNG mainly to Japan and other Asian nations as well as to North America. Its liquefaction plant, located in Prigorodnoye, Sakhalin Oblast, Russian Federation, has the maximum production capacity of about 9.6 million tons per annum.
|[Key terms of SPA]
Sakhalin Energy Investment Company Ltd.
Sakhalin Energy Investment Company Ltd. is a company based in Yuzhno-Sakhalinsk, Sakhalin Oblast, Russian Federation. The company’s equity ownership consists of:
OAO Gazprom: 50% + 1 share
Shell Sakhalin Holdings B.V. (Subsidiary of Royal Dutch / Shell): 27.5% - 1 share
Mitsui Sakhalin Holdings B.V. (Subsidiary of Mitsui & Co., Ltd.): 12.5%
Diamond Gas Sakhalin B.V. (Subsidiary of Mitsubishi Corporation): 10%
|Osaka Gas Co., Ltd.
Osaka Gas is one of the largest gas utilities in Japan with its headquarters in Osaka, having the customer base of 6.7 million in the Kansai region. In FY2008 the company purchased a total of 7.32 million tons of LNG from the following countries (numbers in million tons): Australia (1.16), Brunei (0.8), Indonesia (2.63), Malaysia (0.67), Oman (1.17), Qatar (0.61), others (0.28).