Domestic gas supplies

Sakhalin-1 has been delivering gas to domestic customers in Khabarovsk Krai since 2005, which is a significant step in the Russian Far East Gasification Program. As a result many small and mid-sized businesses, as well as public utility companies that supply heat and electric power to krai residents, are now able to use a more environmentally-friendly energy source for their needs.

The sales agreements concluded with OAO Khabarovsk Krai Gas (the owner of gas distributing network) and OAO Khabarovsk Energo (currently Far East Generating Company), are the first ever concluded between investment project participants under a Production Sharing Agreement and domestic Russian gas buyers for long-term gas sales based on international market pricing and commercial terms.

When requested by the buyers, Sakhalin-1 delivered volumes at rates higher than agreed to in the gas sales contracts, to ensure that the buyers receive adequate supply, particularly in winter, to maintain their operations.