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31mar22

Japan has no plans to leave Sakhalin-2 project, says PM

Japan does not intend to leave the oil and gas project Sakhalin-2 as it is interested in continuing purchasing energy resources within its framework, Prime Minister Fumio Kishida said addressing the parliament on Thursday.

"This is an extremely important project for our energy security, as it ensures long-term and stable LNG supplies at a reasonable price. We do not intend to leave it," he said, adding that the sanctions policy of the Group of 7 against Russia over the military operation in Ukraine considers the interest of each state from the viewpoint of ensuring energy security and energy supplies.

Sakhalin-2 is being implemented in Russia's Sakhalin under a production sharing agreement. Sakhalin Energy is its operator. Gazprom has a controlling stake (50% plus one share), Mitsui has 12.5%, Mitsubishi - 10%. The majority of LNG produced within the project flows to Japan.

Russia's share in the total volume of Japanese LNG imports amounted to around 8.8% over the past years. Japan receives the main part of Russian LNG from Sakhalin.

Russian President Vladimir Putin said on February 24 that in response to a request by the heads of the Donbass republics, he had made a decision to carry out a special military operation in Ukraine, stressing that Moscow had no plans of occupying Ukrainian territories. Western countries responded to the actions of the Russian authorities by slapping sanctions against physical and legal entities.

[Source: Tass, Tokyo, 31Mar22]
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