Japan plans to maintain its stakes in the Sakhalin-2 natural gas project in Russia’s far east, the Nikkei Asia reported, after President Vladimir Putin signed a decree transferring rights to a new Russian company just over two weeks ago.
The Japanese government has urged trading houses Mitsui and Mitsubishi to maintain their stakes in Russia’s Sakhalin-2 liquefied natural gas (LNG) project under its new operator.
The recent decree gave stakeholders a month to say whether they will take a holding in the new company. The Japanese government has proposed to trading companies with stakes in the existing operator that they remain as shareholders after the transfer, the business publication reported.
Prime Minister Fumio Kishida met with Minister for Economy, Trade and Industry Koichi Hagiuda on Friday, the Nikkei said. Hagiuda subsequently told reporters that they had agreed the stake should be maintained.
Before the transfer, the project was 27.5% owned by Shell, 12.5% by Mitsui & Co and 10% by Mitsubishi Corp. Japan relies on Russia for about 9% of its LNG, and almost all imports from the nation are Sakhalin-2 supplies.
The Sakhalin-2 project produces 10 million tons of LNG per year. Six million tons are shipped to Japan, accounting for around 10% of its total imports.