Gazprom and KOGAS address prospects of boosting Russian LNG supplies to Korea
A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Lee Seung-hun, President and CEO of KOGAS, took place today at the Eastern Economic Forum 2016 in Vladivostok.
The meeting addressed partnership in the energy sector, namely Russian LNG supplies from the Sakhalin II project. The parties discussed, among other things, the prospects for boosting gas exports to Korea after the commissioning of the third train of the LNG plant.
KOGAS is focused on the construction and operation of LNG receiving terminals and gas distribution networks, the implementation of international gas projects, and research and development in the gas industry.
Russia's only LNG plant is operating under the Sakhalin II project. Sakhalin Energy Investment Company Ltd. (SEIC) is the Sakhalin II project operator with the ownership distributed among Gazprom (50 per cent plus one share), Shell (27.5 per cent minus one share), Mitsui (12.5 per cent), and Mitsubishi (10 per cent). In 2015, the plant produced 10.8 million tons of LNG, exceeding the design capacity by 1.2 million tons. On June 18, 2015, Gazprom and Shell signed the Memorandum on implementing the construction project for the third production train of the LNG plant.
In 2005, SEIC and KOGAS signed a contract for the supply of 1.5 million tons of LNG per year from the Sakhalin II project.