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Mitsui, Mitsubishi to continue participation in Sakhalin-2 project

  • By Al Mayadeen Net
  • Source: Agencies
  • 13 Mar 2022 13:32
2 Min Read

Japanese company Mitsui and Mitsubishi sent documents to the Japanese Economy Ministry, noting the risks of an early exit from the Sakahlin-2 project in Russia.

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  • Around 60 percent of the liquefied natural gas produced at Sakhalin-2 is intended for supplies to Japan.
    Around 60 percent of the liquefied natural gas produced at Sakhalin-2 is intended for supplies to Japan.

Japanese corporations Mitsui and Mitsubishi will continue their participation in the Russian Sakhalin-2 project, in which their joint share amounts to 22.5 percent, the Nikkei newspaper reported, citing informed sources.

According to the newspaper, Japan’s interests in the project are significantly different from those of Europe. In particular, in early March, Mitsui and Mitsubishi sent documents to the Japanese Economy Ministry, which include statements about risks of an early exit from the project, and this being “in interests of China.”

Nikkei estimated that around 60 percent of the liquefied natural gas (LNG) produced at Sakhalin-2 is intended for supplies to Japan, which constitutes most of the LNG deliveries from Russia to Japan.

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The Sakhalin 2 project is exploring two reserves - Piltun-Astokhskoye and Lunskoye - in the Okhotsk Sea. The infrastructure includes three offshore facilities, an onshore processing facility, an oil shipping terminal, and an LNG plant.

The Sakhalin Energy company manages the project. Fifty percent plus 1 share of Sakhalin Energy belong to Russian company Gazprom, 27.5 percent minus 1 share — to Shell, 12.5 percent to Mitsui & Co. Ltd, and 10 percent to Mitsubishi Corporation.

On February 28, Anglo-Dutch petroleum giant Shell announced the withdrawal from joint ventures with Gazprom and Gazprom Neft, including the Sakhalin 2 project in the wake of Russia’s special military operation in Ukraine.

Russia launched an operation in Ukraine after the Donbass republics appealed for help in defending themselves against the Ukrainian military aggression.

In response, Western nations have rolled out a comprehensive sanctions campaign against Moscow, which includes airspace closures and restrictive measures targeting numerous Russian officials and entities, media, and financial institutions.

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