Gazprom today has supplied its first LNG cargo to Japan.

The transaction was effectuated via Gazprom Marketing & Trading Ltd., which is part of the Gazprom Group of companies.

The LNG was purchased from Mitsubishi Corporation, which had bought it from Celt (a joint venture between Mitsubishi Corporation and Tokyo Electric Power). This successful trading operation between Gazprom and Mitsubishi Corporation has become an initial step for Gazprom to gain access to the liquefied gas market of Asia Pacific.

145,000 cubic meters of LNG (equivalent to some 92 million cubic meters of natural gas) were supplied ex-ship to the Chubu Electric Power-owned Chita LNG terminal.

The Asia Pacific market is of strategic importance for Gazprom and the Company places therefore special emphasis on gas deliveries to this region. Gazprom is keen to occupy a firm position in the Asian market, both in terms of long-term pipeline gas supply and by developing a relatively new business segment for the Company – LNG trade.

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Entering the Gazprom Group of companies, Gazprom Marketing & Trading Ltd. was established in the UK in 1999. In August 2005, the company entered with Shell Western BV and BG Group into an agreement to supply LNG to the US market. The first LNG carrier arrived at the Cove Point regasification terminal (Maryland, USA) on September 2, 2005.

In November 2005, Gazprom Marketing & Trading Ltd. signed an LNG supply agreement with Gaz de France, MED LNG & GAS and Shell. An LNG carrier was sold to Shell Western LNG and supplied to the Cove Point regasification terminal in early December 2005.

In April 2006, Gazprom Marketing & Trading Ltd. effectuated the first LNG shipment to the UK-based Isle of Grain terminal. The LNG was purchased from Gaz de France and sold to British Petroleum owning capacity at the receiving terminal. The LNG supply volume averaged 140 thousand cubic meters (equivalent to some 85 million cubic meters of natural gas).

Mitsubishi Corporation comprises 29 business units in Japan and over 192 abroad, and is the leading Japanese company by capitalization.

Mitsubishi’s major business lines are manufacture and sale of various products (from textile to machinery & equipment), management support for new businesses, state-of-the-art technology & fundraising for projects and project management.

Mitsubishi has been involved in liquefied natural gas trading since 1969. The company is a partner in the North West Shelf upstream project for Australia’s northwest continental shelf, a stakeholder in Brunei LNG (Brunei), MLNG Satu, MLNG Dua and MLNG Tiga (Malaysia), Oman LNG and Qalhat LNG (Oman) as well as an investor in the Tangguh LNG plant construction project in Indonesia.

In October 2005, Gazprom and Mitsubishi Corporation signed a Memorandum of understanding.

On August 8, 2006, Gazprom Marketing & Trading Ltd. and Tokyo Electric Power, Inc. entered into a framework agreement to trade in liquefied gas.

Chubu Electric Power Co., Inc. is a prominent electricity supplier in Japan. The company’s clientele are 16.6 mln people (roughly 13 per cent of Japan’s population) inhabiting a 40,000 sq m territory (about 10 per cent of the national territory).

Tokyo Electric Power, Inc. is the world’s largest LNG buyer (17 mln t per year) and Japan’s largest electricity producer (a 33 per cent share of the domestic market). The company’s energy products are consumed by 28 mln people. Tokyo Electric Power-run power plants are located in the most economically prosperous region of Japan: Tokyo, Yokohama and surrounding prefectures.