Marubeni to import Russian LNG starting in 2019

TOKYO -- Marubeni will sign a long term contract with Rosneft to import LNG from 2019, the Nikkei reported in its evening edition.

Rosneft plans to build an LNG production base near Sakhalin Island in the Russian Far East.

Gazprom, Russia's state gas producer has long monopolized gas export rights. But its shipments have been stagnant due to the growing output of shale gas in the United States.

Rosneft has been awarded export rights and allowed to sign long term contracts as part of the push by Russian President Vladimir Putin to boost gas exports from the country's Far East. Marubeni will be the first to import LNG from Rosneft.

Rosneft's LNG base is expected to have an annual output capacity of at least 10 million tons, equivalent to about 10% of Japan's annual imports. Marubeni plans to import 1.25 million tons when the plant comes online and hopes to gradually increase the volume.

The trading firm plans to ask Rosneft to review its oil-indexed pricing method, which could work in Japan's favor in price negotiations.