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 price is $390 per 1,000 cubic m for Japan and $150 per 1,000 cubic m for South Korea, compared to $400 per 1,000 cubic m for pipeline gas for the Ukraine. Other producers sell it there at a higher price. Indonesian gas was sold by $640 per 1,000 cubic m tor Japan and $600 per 1,000 cubic m for South Korea. It means that Russia sells gas by 1.6 times cheaper than the market price to Japan and by 4 times cheaper to South Korea.
The will be companies from China and South Korea will help it to develop the Arctic shelf.
Rosneft has found new partners among the Asian companies. Over the last few days the head of Rosneft, I. Sechin, has managed to visit 2 countries –South Korea and China where he held negotiations with the 5 largest Oil and Gas companies in the region. The main result was the signing of the agreement with the Chinese companies on their joint work at the shelf of the Pechora and Barents Seas. Analysts assess positively this possible cooperation and say Rosneft will open a new market for hydrocarbons sales for itself on the account of new partners and accelerate the process of the shelf development.
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 »