Japan-based trading company Marubeni has entered into a Heads of Agreement (HOA) with Russia’s Rosneft Oil Company for the sale and purchase of liquefied natural gas (LNG).

As per the agreement, the two companies will enter into negotiation of the long-term LNG Sale and Purchase Agreement for an offtake of 1.25 million tons per annum.

The LNG to be sold under the agreement will be produced from Rosneft’s LNG project planned in Russian Far East. Production of LNG is expected to commence from 2019.

Marubeni and Rosneft’s HOA is in accordance with the Memorandum on Cooperation signed by the two companies to jointly conduct studies and develop plans for exploration and development of oil and gas fields.

The Memorandum on Cooperation also includes marketing and transportation of LNG, engineering and construction of an LNG plant, supply of equipment and machinery, and financing the LNG project in the Russian Far East.

Marubeni through LNG and other energy related business with Rosneft will contribute towards the economic exchange and development of Japan and Russia.