On May 17, 2010 Sakhalin Energy has delivered the first cargo of Sakhalin LNG to Japanese customer Tohoku Electric Power Co., Inc.

The LNG cargo of 145,000 cubic meters was delivered on Cygnus Passage bound for Higashi-Niigata terminal.

Higashi-Niigata terminal is the largest LNG receiving terminal located on the western coast of Sea of Japan, Niigata prefecture, and is the closest LNG terminal in Japan from Sakhalin Island: sailing time is within two days.

At present Tohoku Electric is the only company who received both crude oil and LNG produced by Sakhalin Energy. Prior to this first LNG delivery, Tohoku Electric procured crude oil during past years, and now delivery of LNG just started from May 2010.

Tohoku Electric is the fifth-largest Japanese electric utility company, servicing residential, commercial and industrial customers in six prefectures in Tohoku region plus Niigata Prefecture.

Sales and Purchase Agreement (SPA) between Sakhalin Energy and Tohoku Electric was signed in 2006.

May 2010.