Japan's Mitsui says no plans to exit Russia's Sakhalin-2 LNG project
(Reuters) - Japanese trading house Mitsui & Co has no plans to withdraw from the Sakhalin-2 liquefied natural gas project in Russia, a senior executive said on Wednesday, adding the operation was continuing super-chilled fuel exports to Japan.
"We have decided last year to keep our stake in the Sakhalin-2 after consulting with the Japanese government as the project supplies about 9% of Japan's LNG imports," Toru Matsui, Mitsui's senior executive managing officer, told an annual general meeting.
"We have no plan to exit the project at the moment," he said, while adding that Mitsui would make an appropriate change if and when the situation changed because of the Japanese company's policy of complying with any government sanctions.
Asked by a shareholder whether Mitsui was under pressure or had received unreasonable requests from the Russian government, Matsui said the project was experiencing no issues with operations and was continuing to export LNG to Japan.
Mitsui and its peer Mitsubishi Corp retained their 22.5% combined stakes in Sakhalin-2 after the Kremlin ordered the establishment of a new locally based operating company in retaliation for Western sanctions imposed on Moscow after it sent troops to Ukraine last year.
Their former partner Shell quit Sakhalin-2 as one of the many Western firms that pulled out of Russia after Moscow's invasion of Ukraine. In April, the Russian government approved the sale of Shell's 27.5% stake to local natural gas producer Novatek.
Sakhalin-2 is one of the world's largest LNG projects, supplying about 4% of the global market. Russia's Gazprom (GAZP.MM) holds a 50%-plus-one-share stake in the operation.
Related News
- Venture Global, Germany's EnBW expand partnership with new LNG contract
- Burckhardt Compression secures milestone order for first industrial scale liquefied CO₂ carrier supporting Northern Lights CCS project
- Hanwha Ocean signs strategic MoU with Kanata Clean Power for proposed $15.7-B, 12-MMtpy FLNG project in Canada
Related News
- Cheniere signs deal with Bechtel to expand U.S. LNG export capacity
- TC Energy approves $1.5-B Columbia Gas expansion after profit tops estimates
- Wärtsilä continues to expand its data center footprint with new 790 MW order in Texas
- Baker Hughes’ fuel flexible NovaLT™ 16 gas turbine certified by RINA for marine propulsion
- Japan got bulk of Russian LNG from Sakhalin-2 in 2025
Comments