RIA Novosti quoted the Energy Ministry said that Sakhalin Energy, the operator of the Sakhalin-2 oil and gas project off Russia Pacific coast will supply Tokyo Electric Power Company, Japan largest electricity provider with liquefied natural gas under a mid term contract.

The contract was approved at a meeting of the Sakhalin-2 supervisory board which includes officials from various ministries. The Energy Ministry did not mention any other details of the contract in its statement.

Russia gas giant Gazprom holds a 50% stake in Sakhalin Energy. Other shareholders include Royal Dutch Shell with 27.5%, Japan Mitsui and Mitsubishi with 12.5% and 10% respectively.

The USD 20 billion Sakhalin-2 project includes the Piltun-Astokhskoye and Lunskoye oil and gas fields on Sakhalin Island North Eastern shelf with recoverable reserves estimated at 150 million tons or 1.1 billion barrels of oil and 500 billion cubic meters of natural gas.

(Sourced from RIA Novosti)