One more Japanese company signs contract with new Sakhalin-2 operator – Kyodo

TASS Russian News Agency | Aug 30, 2022 at 6:42 PM

TOKYO, August 30. /TASS/. Japanese energy company Kyushu Electric Power has signed a contract for the purchase of liquefied natural gas (LNG) with a new operator of the Sakhalin-2 oil and gas project, the Kyodo agency reported on Tuesday, citing sources.

On August 20, the Nikkei newspaper reported, citing sources, that contracts with the new operator of the Sakhalin-2 project were also signed by the Japanese companies Tokyo Gas and JERA - a joint venture of Tokyo Electric Power and Chubu Electric Power. According to Nikkei, at this stage, none of the eight Japanese companies receiving LNG from this project have expressed the desire to terminate supply contracts.

On August 2, Russian Prime Minister Mikhail Mishustin signed the decree on establishment of the Sakhalin Energy LLC, the new operator of Sakhalin 2. The company is registered in Yuzhno-Sakhalinsk.

In accordance with the executive order of the Russian President signed on June 30, Sakhalin Energy [previous operator - TASS] shareholders should agree to take participation interests in the created company in proportion to interests in the previous operator within one month. The controlling stake (50% plus 1 share) in Sakhalin Energy belongs to Gazprom, Shell has 27.5% of the shares, Mitsui and Mitsubishi own 12.5% and 10% respectively.