Japan’s Mitsui is nearing a decision on whether to join the new Sakhalin-2 operator, Nikkei.
Tokyo (Reuters) – According to the Nikkei newspaper, Japanese trading major Mitsui & Co is nearing a final decision to join a new Russian operator for the Sakhalin-2 liquefied natural gas (LNG) project.
The new organization, registered on August 5, replaces project operator Sakhalin Energy as Moscow rewrites the laws for foreign businesses working in Russia in the aftermath of Russia’s invasion of Ukraine.
According to the article, Mitsui, which sees no disadvantageous conditions, will make a final decision by the end of this month and inform Russia of it.
Sakhalin-2 was owned by both the corporation and its competitor, Mitsubishi Corp. The latter is still debating whether to join the initiative, according to the article.
The project is vital to Japan’s energy security because the country imports nearly a tenth of its LNG from Russia, primarily from Sakhalin-2. Japan has requested that both corporations “consider favourably” about joining the new company.
A Mitsui representative declined to comment, other than to state that the company was in negotiations.
Separately, JERA, a joint venture of Tokyo Electric Power Holdings and Chubu Electric Power, and Tokyo Gas extended contracts to purchase LNG from Sakhalin-2 on Friday, according to the report.
A JERA representative declined to comment. According to a Tokyo Gas spokeswoman, nothing has been determined on the topic.
