Japan wants to preserve its participation in Sakhalin-2 oil-gas project

The Sakhalin-2 project, which accounts for some eight per cent of Japan’s LNG import, is very important for Tokyo from the point of view of ensuring energy security, Japan’s Chief Cabinet Secretary Hirokazu Matsuno said on August 4.

"The Sakhalin-2 project is important from the point of view of electricity and stable gas supplies," he said, according to TASS. 

Commenting on Russia’s decision to establish a new Russian project operator, he said that Tokyo will respond "in cooperation between the government and business" to defend the interests of Japanese companies and ensure stable supplies of energy sources.

Altogether, he repeated Japan’s position on the importance of diversifying supplies of energy sources and diminishing dependence on Russia in this sphere.

Japan’s Economy, Trade and Industry Minister Koichi Hagiuda said earlier on August 4 that Tokyo wants to preserve its participation in the Sakhalin-2 oil and gas project.

On August 2, Russian Prime Minister Mikhail Mishustin signed a resolution on establishing Sakhalin Energy LLC as a new operator of the Sakhalin-2 PSA project operator with registration in Yuzhno-Sakhalinsk. Andrey Oleinikov, CEO of Sakhalin Energy subsidiary, a current project operator, will be the new operator’s top executive.

On August 2, Russian Prime Minister Mikhail Mishustin signed a resolution on establishing Sakhalin Energy LLC as a new operator of the Sakhalin-2 PSA project operator with registration in Yuzhno-Sakhalinsk. Andrey Oleinikov, CEO of Sakhalin Energy subsidiary, a current project operator, will be the new operator’s top executive.

On June 30, Russian President Vladimir Putin signed a decree, under which a Russian company will become the new operator of the Sakhalin-2 project, instead of the Sakhalin Energy company. Foreign stakeholders are supposed to agree to their shares in the new company proportionally to their stakes in the former company within a month.

After a meeting with Japanese Prime Minister Fumio Kishida on July 16, Haigiuda said that Mitsui and Mitsubishi, which hold 12.5% and 10%, respectively, should preserve their presence. Kyodo said back then, citing sources, that the cabinet was in consultations with the companies. Later, the minister said that Japan had notified the United States about its plans to preserve shares in Sakhalin-2.

Tokyo has repeatedly said that it is interested in Sakhalin-2 from the point of view of its energy security. Russia accounts for 8.8% of Japan’s import of liquefied natural gas. Practically all gas comes from Sakhalin-2.