Russia Oil and Gas, Kogas
In Moscow, Gazprom and KOGAS have agreed on close cooperation in the field of liquefied natural gas supplies to Korea.
LNG price by contract of Sakhalin Energy and Kogas in 2014 rose after cancellation of price restrictionsEdited by Rhod Mackenzie / 2015-02-04 03:10:51
The LNG price by the contract between Sakhalin Energy and Kogas (South Korea) in 2014 rose significantly after the cancellation of the price restriction. This is the assessment of the National Energy Safety Fund.
In the mid 2000s Kogas signed a long-term agreement with Sakhalin Energy for the purchase of 1.5 mln tons of LNG a year from Sakhalin-2 project, with an option for the additional 0.5 mln tons. The average price by this agreement didn’t exceed $200 per ton from the moment of the start of supplies in late 2009. The additional volumes by the contract were shipped at high market prices peculiar for APR for the past years (higher average price at certain months is explained by that).
“A low price was stated in a 5-year contract. Both the supplier and buyer gained the right to bring it to the market conditions if they significantly differ. By our assessment, Sakhalin Energy was $3.5-4 bln short of net profit from the gas supply at a fixed price”, analysts of National Energy Safety Fund say.
The companies from China and South Korea will help it to develop the shelf. Read more »
The operator of the project “Sakhalin-2” – company Sakhalin Energy – produced more than 30 mln tons of LNG over the first 3 years of the operation of the LNG plant, it exceeds the volume of the annual gas supply to Germany.
The LNG production plant Sakhalin Energy in the South of Sakhalin was launched in February 2009. Its project capacity is 9.6 mln tons a year, which is equivalent to 5% of the LNG production in the world. RIA Novosti reports. Read more »
The Russian oil companies keep preparing for the geological exploration tender that will be held in mid April. They all will participate together with the foreign partners. Kommersant learnt that Bashneft completes the negotiations on the foundation of a consortium with PetroVietnam and the independent Premier Oil (Great Britain). Rosneft is discussing the possibility of partnership with ExxonMobil. Read more »
Russia and China have agreed on the price formula for the Russian gas, the deputy chairman of the Management of Gazprom A.Medvedev said, RIA Novosti reports.
The question what the starting point of this formula appliance is left open,” Medvedev said at the forum “Oil and gas of Sakhalin”. Moscow offers to pass to equal earning power of gas price for domestic and foreign consumers in 2015. Read more »
The chairman of the Board of Management of OAO “Gazprom” A.Miller and the president of Kogas Choo Kang-Soo signed a “road-map” on the implementation of natural gas supply from Russia to Korea via the territory of the Korean National-Democratic Republic and discussed the matters, concerning practical work organization on its implementation. Read more »