Sakhalin II will also be used to supply Natural Gas to the United States. In late 2004, Sakhalin Energy signed a contract with Coral Energy to supply 1,800 billion cubic feet (bcf) of LNG over 20 years to a power plant on the border of California and Mexico. The LNG will be delivered via tanker to the Energia Costa Azul terminal being constructed in Baja California, Mexico. In March 2004, Sakhalin II announced the sale of 300,000 tons of LNG per year to Japans Tokyo Gas and Tokyo Electric Power (TEPCO) starting in summer 2008. In July 2005, the project operators announced a 20 year sales agreement of 1.6 million tons per year of LNG to Korea Natural Gas (KOGAS). Some of these contracts have had to be renegotiated as the target start date for LNG exports has been delayed from late 2007 to mid 2008. The delays are mainly due to environmental hurdles and to rising costs. A recent report by the World Conservation Union expressed concern that a planned Pipeline route from Sakhalin Island to Japan (see map) would harm Pacific gray whales. The consortium members had expected around $5 billion in loans through 2006, but with the Phase II (LNG project and year-round Oil production) cost raised above $20 billion, Sakhalin Energys CEO announced that those loans would not be forthcoming as early as the projects operators had hoped. For these reasons, LNG production has been delayed until at least 2008, and year-round oil production has been delayed until at least 2007. Sakhalin II began Crude Oil production during 1999, averaging 80,000 bbl/d of production during July 2005. Completion of Phase II (sometime during late 2007) would increase daily production from Sakhalin II to around 180,000 bbl/d.