AFX Europe (Focus): SKorea taps Shell's Sakhalin II, Malaysia LNG, Yemen as long-term suppliers: “The commerce, industry and energy ministry said that it has picked the Shell-led Sakhalin Energy Investment Co, Yemen Liquefied Natural Gas (LNG) and Malaysia LNG as preferred suppliers for 20-year LNG contracts worth a combined 20 bln usd.” (ShellNews.net) 16 Feb 05

Feb 16, 2005

SEOUL (AFX) - The commerce, industry and energy ministry said that it has picked the Shell-led Sakhalin Energy Investment Co, Yemen Liquefied Natural Gas (LNG) and Malaysia LNG as preferred suppliers for 20-year LNG contracts worth a combined 20 bln usd.

Sakhalin Energy is the Shell-led operating company for the Sakhalin II Project in eastern Russia, the world's largest integrated oil and gas project, involving capital expenditure of nearly 10 bln usd.

Yemen LNG is owned by France's Total, which has a 43 pct stake, Yemen Gas with 23 pct, Hunt Oil with 18 pct, South Korea's SK Corp with 7 pct, and Hyundai Corp with 6 pct.

Malaysia LNG is owned by Petronas Gas Sdn Bhd with a 65 pct stake, the Malaysian state of Sarawak with 5 pct, and Shell and Mitsubishi Corp with 15 pct each.

Sakhalin Energy and Malaysia LNG will take on 1.5 mln tons of gas each while Yemen LNG supply 1.3 mln tons.

The pricing of the contracts ranges from 197-218 usd per ton.

eunkyung.seo@xinhuafinance.com