Russian energy major Gazprom has signed a framework agreement with Japanese multinational Mitsui & Co to collaborate on LNG bunkering in the Sea of Japan.
The two firms will invest in LNG bunkering for marine vessels and aim to build on ongoing LNG bunker activities formalized in a Memorandum of Understanding signed in September last year.
Alexey Miller, Chairman of the Gazprom Management Committee, and Masami Iijima, Chairman of the Board of Directors of Mitsui signed the framework document at the recent Eastern Economic Forum 2017 in Vladivostok.
“The document reflects the commitment of the parties to collaborate in producing, transporting and marketing small- and mid-scale LNG in Japan, as well as in LNG bunkering in the Sea of Japan,” a spokesperson for Gazprom said.
Deepening Sakhalin II partnership
Alongside LNG bunkering in Japan the wide-ranging framework agreement will cement the firms’ partnership in large-scale projects such as Sakhalin II, Russia's only active LNG plant.
Gazprom and Mitsui are partners in the Sakhalin II operator Sakhalin Energy Investment Company Ltd. In which Gazprom owns a 50% stake and Mitusi owns 12.5%.
Anglo-Dutch energy firm Shell owns a further 27.5% minus one share and Japanese firm Mitsubishi owns the remaining 10%.
Mitsui eyes Baltic LNG involvement
Further steps under the Agreement of Strategic Cooperation signed in December last year may include Mitusi adding its expertise to the Baltic LNG project which Gazprom is currelty leading.
“Baltic LNG is a natural gas liquefaction plant in the Leningrad Region. The potential target markets for the project include countries in the Atlantic region, Middle East, and South Asia, as well as small-scale LNG markets in the areas of the Baltic and North Seas,” a spokesperson for Gazprom said.
The proposed plant will be built near the seaport of Ust-Luga and will have an initial annual capacity of 10 million tonnes. Gazprom states that there is a possibility of LNG swap deals also under consideration.
