Japanese companies call to preserve their stakes in Russian LNG scheme

(MENAFN) Following the project's handover to a Russian operator, the Japanese government has urged Mitsubishi and Mitsui to preserve their stakes in Sakhalin-2 Liquefied Natural Gas, according to a Saturday article in The Nikkei.

After speaking with Prime Minister Fumio Kishida, Japanese Minister of Economy, Trade, and Industry Koichi Hagiuda informed reporters, according to the news source, “the companies have shares [in Sakhalin-2], so we agreed that they should hold them tight.”

Ten million tons of LNG are produced annually by Sakhalin-2, with Japan receiving around 60 percent of the project's production. Sakhalin-2 operator Sakhalin Energy Investment Company, in which Japanese conglomerates Mitsui and Mitsubishi own 12.5 percent and 10 percent, correspondingly, are going to become the property of a company that is going to be established by the Russian government, according to a decree signed by Russian President Vladimir Putin on June 30.

The Nikkei announces that as long as the present contracts are in place, Tokyo may continue to purchase gas without taking part in the project. The Japanese government believes Mitsui and Mitsubishi can guarantee the nation’s continuous access to Russian LNG by maintaining their shares in the project, despite the likelihood of a disruption in shipments. Even if Mitsubishi and Mitsui remain stockholders, the newspaper warns that " there is no guarantee that the new operator will continue to reliably supply LNG to Japan."

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