Minister: Japan not to leave Russia’s Sakhalin-2 even if ordered

TOKYO, May 31 (PRIME) -- The government of Japan does not plan to leave Russia’s liquefied natural gas (LNG) project Sakhalin-2 even if it is ordered to do so, Japanese Economy, Trade, and Industry Minister Koichi Hagiuda said on Tuesday.

During debates of the budget commission of the Japanese parliament’s upper chamber, parliament member Muneo Suzuki, well-known for his pro-Russian position, asked whether Tokyo planned to protect its interests in the Sakhalin-2 project.

“Even if we are told to stop, we have no plans to do that. Sakhalin-2 is a concession, the signing of which was the fruit of hard work of our predecessors. Russia could be the owner of the land, but the rental rights and the equipment for gas liquefaction and transportation are owned by the Japanese companies and the Japanese government,” the industry minister said.

Sakhalin-2 is Russia’s first LNG producing facility. Its operator Sakhalin Energy is owned by Russian gas giant Gazprom with a 50% plus one share stake, Shell with 27.5% minus one share, Japan’s Mitsui & Co. Ltd with 12.5% and Mitsubishi Corporation with 10%.

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