Sakhalin Energy, operator of the Sakhalin II project, has signed a new liquefied natural gas sales and purchase agreement with Japan-based Chubu Electric Power.

The transaction calls for the supply of approximately 0.5 million tons per annum of liquefied natural gas (LNG) for a period of 15 years, with deliveries to commence in April 2011.

The LNG will be supplied from Sakhalin Energy’s LNG plant at Prigorodnoye at Aniva Bay on the southern tip of Sakhalin. The two trains of the plant will have a combined capacity of 9.6 million tones of LNG per annum.

Sakhalin Energy’s CEO, Ian Craig, said: We have worked closely with Chubu Electric for some time and we are extremely pleased to have signed the final agreement today. We look forward to building a long-term mutually beneficial relationship with the company. The signing of this SPA with Chubu Electric confirms the continued strong customer desire to receive supplies from this pioneering Russian project.