Report: Japan’s Mitsui, Mitsubishi to stay in Sakhalin-2 project

TOKYO, Mar 14 (PRIME) -- The consortium of Japan’s Mitsui and Mitsubishi plans to continue participation in Russia’s Sakhalin-2 liquefied natural gas (LNG) project, local newswire Nikkei reported on March 13 citing informed sources.

According to the documents that were submitted by the companies to the Japanese Economy, Trade and Industry Ministry in early March, withdrawing from the project would be dangerous for the companies and would help China.

About 60% of the LNG that is produced by the Sakhalin-2 project is for exports to Japan, and it accounts for almost 100% of the LNG that Japan receives from Russia, Nikkei reported.

The Sakhalin-2 project includes the Piltun-Astokhskoye oil field and the Lunskoye gas field in the northeast of the Sakhalin island. Sakhalin-2’s infrastructure includes three offshore platforms, an onshore processing facility, an oil export terminal, and an LNG plant with a design capacity of 9.6 million tonnes per year. The operator is Sakhalin Energy, in which gas giant Gazprom owns 50% plus one share, Shell owns 27.5% minus one share, Mitsui & Co. Ltd 12.5%, and Mitsubishi Corporation 10%.

In late February, Shell decided to withdraw from all joint ventures with Gazprom and Gazprom Neft, including Sakhalin-2.

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