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Gazprom and Kogas discuss LNG exports

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LNG Industry,

The Chairman of the Gazprom Management Committee, Alexey Miller, recently held a working meeting with Lee Seng-hun, President and Chief Executive Officer (CEO) of Kogas.

The meeting, which took place at the Eastern Economic Forum 2016 in Vladivostok, Russia, addressed Russian LNG supplies from the Sakhalin II project. The parties discussed the prospects for increasing gas exports to South Korea after commissioning the LNG terminal’s third LNG train.

The Sakhalin II project is operated by Sakhalin Energy Investment Co. Ltd (SEIC). Gazprom is the majority shareholder in the LNG project (50%), with the remaining owenership distributed amongst Shell (27.5% minus one share), Mitsui (12.5%) and Mitsubishi (10%).

Kogas previously signed a contract with SEIC in 2015 for the supply of 1.5 million tpy of LNG from the Skahalin II project.

The LNG project produced 10.8 million t of LNG in 2015, exceeding the design capacity by 1.2 million t. In June 2015, Gazprom and Shell signed a memorandum on implementing the construction project for the LNG terminal’s third production train.

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