Page 9 - AsianOil Week 34 2022

AsianOil EAST ASIA AsianOil

Platform stationed off
the coast of Sakhalin
island as part of the
Sakhalin-2 project.

New Sakhalin-2 operator scraps

LNG sale to Asian buyer

PIPELINES & THE Russian entity recently set up to manage remain the same, including price and volume,
TRANSPORT the Sakhalin-2 LNG and oil project has scrapped according to Bloomberg, but customers have
shipments to at least one Asian customer because nevertheless consulted lawyers to check before
Working out deals with of payment issues and delaying finalising new committing to deals with the new operator or
the new Russian entity contracts, Bloomberg reported on August 24. making payments to other banks.
that is operator is taking Under a June 30 presidential decree, Rus- One buyer that has entered into a deal with
time. sia transferred all rights and obligations of the the new operator is Japan’s JERA, who told Reu-
Sakhalin-2 project from the Sakhalin Energy ters on August 25 that it had done so to maintain
Investment consortium to a new operator called long-term deliveries of LNG.
Sakhalinskaya Energia, after accusing the share- “The main conditions such as volume, price
holders, which include Shell and Japan’s Mitsui and [payment] currency remained the same as
and Mitsubishi, of violating their obligations. the previous contract,” a spokesperson for JERA
According to Bloomberg, customers have been told Reuters. Kyushu Electric Power also told the
asked to commit to new deals and send pay- news agency it was likely to maintain its long-
ments to banks in Moscow from August 19, term contract, while Tokyo Gas said it was still
when operatorship was transferred. weighing up the matter. Saibu Gas and Tohoku
Most affected by any disruptions in supply Electric Power have said they are still assessing
will be Japan, the biggest offtaker of gas from the details of the agreement.
Sakhalin-2, and South Korea, the second-big- Mitsui and Mitsubishi have decided to retain
gest buyer. their stakes in the new Russian operator, under
“With Sakhalin, North East Asia will have pressure from the Japanese government, which
to drag more cargoes away from Europe, inten- is concerned about Japan’s energy security. Gaz-
sifying the scramble for gas between Asia and prom has just over a 50% interest in the new
Europe heading into winter that could send LNG operator as it did in the previous one, while Shell
prices to unprecedented levels,” an energy ana- is expected to withdraw, having committed to
lyst at Credit Suisse told Bloomberg. leaving Russia in a phased manner after the out-
Most details of the Sakhalin-2 sales contract break of war in Ukraine in late February. ™

Week 34 29•August•2022 www. NEWSBASE .com P9