Source: Arctic LNG 2 sanctions not to affect Japan in Sakhalin 2

TOKYO, Dec 26 (PRIME) -- The U.S. sanctions against Russia's Arctic LNG 2 liquefied natural gas (LNG) project will not affect participation of Japanese companies in the Sakhalin-2 project, a source with knowledge of the situation told PRIME on Tuesday.

"I think that after introduction of the U.S. sanctions against the Arctic LNG 2 project, Japan will be unable to buy gas from it. However, Japan buys gas from Yamal LNG, it is not under sanctions. Last year 600,000 tonnes were bought from it. This year there are purchases as well. Japan buys the bulk of LNG from Sakhalin 2. Last year it bought 6 million tonnes. I think Japan will keep on buying LNG from Sakhalin 2," the source said.

Business daily Kommersant reported on Monday that foreign stareholders of the Arctic LNG 2 project, including Japan's Mitsui and JOGMEC, announced a force major on the ownership after the project was blacklisted by the U.S. The announcement means a refusal from financing the project and offtake contracts on LNG purchases.

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