SAKHALIN ENERGY TO EXPORT LIQUEFIED GAS TO SOUTH KOREA?

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MOSCOW, September 22 (RIA Novosti) - A tender for liquefied natural gas imports is coming up in South Korea. The Russian-based Sakhalin Energy Co. Project Sakhalin 2 operator, is determined to compete, said Victor Snegir, Deputy Director General for Commerce. He was addressing a Russian-South Korean business conference today.

The Sakhalin Energy has faced the Kogas with initiatives to appear in the tender, and called the Kogas to come in its joint stock, he added.

The Sakhalin Energy Investment Company was established, April 1994, to implement Project Sakhalin 2. It envisages breaking up oil- and gasfields of the Sakhalin Island continental shelf on a production-sharing agreement. Signed June 22, 1994, it concerns two sea-based deposits-the Piltun-Astokh oilfield and the Lun gas condensate, both on the Sakhalin northeast shelf. The agreement entered into force June 15, 1996. The federal government and the Sakhalin regional administration are acting on Russia's behalf.

The entire project is estimated at US$10 billion.

Investing in Project Sakhalin 2 is an overseas consortium. The Shell Sakhalin Holding, the British-Dutch Shell's branch, has offered 55 per cent of the required capital. The Mitsui Sakhalin Development, affiliate to the Mitsui-Japan's biggest industrial and financial group, came up with 25 per cent, and the Diamond Gas Sakhalin with another 20 per cent.

The South Korean-based Kogas gas corporation was established in 1983. The government block makes 62 per cent of its stock. The company owns three terminals for imported liquefied natural gas, and a pipeline network of a total 2,442 kilometre length.

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