Gazprom, Kogas expand gas agreements

MOSCOW, June 24 (UPI) -- An extension to an intergovernmental agreement between Russia and South Korea urges liquefied gas shipments from the Sakhalin facility, Gazprom says.

Alexei Miller, the chairman of Russian energy monopoly Gazprom, signed with Choo Kangsoo, his counterpart at South Korean energy giant Kogas, an extension to intergovernmental agreements to explore gas supply projects, the Russian giant said.

Gazprom and Kogas signed a five-agreement in 2003 to examine ways for Russian to deliver gas to South Korea. That agreement was extended for another five years in 2008.

The latest measure examines ways to deliver gas from the Sakhalin-Khabarovsk-Vladivostok gas transmission system.

Both parties stressed the importance of launching LNG supplies from the Sakhalin-2 facility.

In February, Russia opened its first LNG plan on Sakhalin Island to supply mostly Asian markets with natural gas from the nearby facility.

Sakhalin-2 delivered its first shipments of LNG to Tokyo in April amid sagging demand in the energy market.

Japan will purchase about 65 percent of the LNG from Sakhalin. South Korea and the United States signed contracts with Russia for gas purchases as well.