Canadian Press: Shell strikes US$6B deal to ship Russian liquefied gas to North America
“The deal is the first that would funnel Russian LNG to the United States, whose demand for natural gas is surging as domestic supply dwindles.”
Thursday, October 14, 2004
MOSCOW (CP) – A consortium led by Royal Dutch/Shell Group that is developing gas reserves off Russia’s Sakhalin Island said Thursday it has struck a $6-billion-US deal to supply liquefied natural gas, or LNG, to energy-hungry North America.
Sakhalin Energy Investment Ltd., operator of the Sakhalin-2 project, said it signed an agreement to ship 37 million tonnes of LNG to a regasification terminal in Mexico.
Shell, which is building the Energia Costa Azul terminal in Baja California with California’s Sempra Energy, is the buyer of the gas.