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AFX Asia (Focus): Mitsui, Mitsubishi in talks for supply of LNG output from Sakhalin – report

Mitsui, Mitsubishi in talks for supply of LNG output from Sakhalin – report
AFX Asia (Focus); May 02, 2006

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TOKYO (AFX) – Trading companies Mitsui & Co and Mitsubishi Corp plan to provide liquefied natural gas from the Sakhalin 2 project off the eastern coast of Russia to Chubu Electric Power Co and Osaka Gas Co, the Nihon Keizai Shimbun reported without citing sources.

The Sakhalin Energy Investment Co, which was set up jointly by Mitsui, Mitsubishi and the Royal Dutch/Shell Group, had earlier agreed to provide about 8.6 mln tons annually out of the total 9.6 mln output — accounting for 16 pct of Japan's LNG imports — to Tokyo Electric Power and Korea Gas Corp.

The Nihon Keizai said the trading firms are close to concluding long-term contracts with Chubu Electric and Osaka Gas for the remaining 1 mln tons.

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