Rosneft President and Chairman of the Management Board Igor Sechin and Managing Executive Officer, Regional CEO for Europe & CIS of Marubeni Corporation Motoo Uchiyama signed a Heads of Agreement for sale and purchase of liquefied natural gas (HoA) at the Saint Petersburg International Economic Forum. LNG will be delivered to Marubeni under a new LNG project Rosneft intends to develop in the Russian Far East.
The HoA outlines key commercial parameters, which will underlie the future long-term LNG supply contract. In accordance with the HoA, Rosneft plans to deliver 1.25 million tons of LNG to Marubeni annually on a long-term basis starting from 2019.
Rosneft also signed a Heads of Agreement regarding sale and purchase of LNG with Japan’s Sakhalin Oil and Gas Development Co., Ltd. (SODECO) during the official part of the St. Petersburg International Economic Forum. The agreement sets forth key commercial terms of the long-term contract for the delivery of 1 million tons of LNG to be purchased annually from Rosneft’s future project in the Far East to start in the first quarter of 2019, for Japan as the main sales market.
The strong demand for LNG in Japan and other Asia Pacific Region countries, which has been observed in recent years, provides wide opportunities for Rosneft’s new LNG project in the Russian Far East. In addition, LNG deliveries from this project are essential for diversification of LNG supply sources and improvement of Japanese energy security. Favorable location of the future plant and its proximity to key sea ports and Japanese regasification terminals will be a distinct advantage for the project ensuring flexibility, reliability and uninterruptable energy source to Japanese consumers.