Sakhalin Energy, the operator of the Sakhalin-2 oil and gas project off Russia's Pacific coast, will supply Tokyo Electric Power Company (TEPCO), Japan's largest electricity provider, with liquefied natural gas under a mid-term contract, the Energy Ministry said on Monday.
The contract was approved at a meeting of the Sakhalin-2 supervisory board, which includes officials from various ministries. The Energy Ministry did not mention any other details of the contract in its statement.
Russia's gas giant Gazprom holds a 50 percent stake in Sakhalin Energy. Other shareholders include Royal Dutch Shell with 27.5 percent, Japan's Mitsui and Mitsubishi with 12.5 percent and 10 percent respectively.
The $20 billion Sakhalin-2 project includes the Piltun-Astokhskoye and Lunskoye oil and gas fields on Sakhalin Island's northeastern shelf, with recoverable reserves estimated at 150 million tons or 1.1 billion barrels of oil and 500 billion cubic meters of natural gas.