Russian PM plans measures to increase LNG market share in the Asia-Pacific by Northern Sea Route
Russian Prime Minister Mikhail Mishustin said the government was taking additional measure to increase liquefied natural gas cargo deliveries to the Asia-Pacific by the Northern Sea Route to offset the loss of pipeline gas customers in the European Union.
Japan's LNG imports rise for third month as year-on-year costs double and amid more Russian deliveries
Japanese liquefied natural gas imports increased for a third successive month in June as they edged higher by 1.7 percent and year-on-year costs doubled while volumes increased from Asia, Australia and particularly Russia.
Japan's Mitsui and Mitsubishi have until the end of July to confirm Russian Sakhalin LNG stake retentions
Japan companies have until the end of July to decide whether to maintain stakes in the Sakhalin II liquefied natural gas export project in the Russian Far East.
The Japanese government is currently coordinating possible future arrangements with the two Japanese LNG stakeholders in the Sakhalin plant, Mitsui & Co and Mitsubishi Corp.
Under the retention plan, Mitsui and Mitsubishi would keep 12.5 percent and 10 percent stakes respectively, even after Russian President Vladimir Putin's signing of an order that sets up a new operating company to safeguard control by Russia of the oil and gas ventures on and offshore Sakhalin Island.
According to the new Sakhalin II LNG operating company decree, foreign shareholders have until the end of July 2022 to apply to retain their existing shares in the new LNG operating entity after it is established.
Analysts noted that Japan acquires about 9 percent of its LNG from the Sakhalin II plant but pressure has mounted on the Japanese to quit Sakhalin amid sanctions and a pull-out by the other main shareholder Shell over Russia’s invasion of Ukraine.
Gazprom owns just over a 50 percent stake in the Sakhalin II operating company, while Shell held around 27.5 percent and the balance is owned by Mitsui and Mitsubishi.
China interest
The Sakhalin II plant began LNG exports in 2009 and has annual capacity from its two Trains of around 10 million tonnes per annum with shipments going mainly to Japan and South Korea and with China standing by to take over any relinquished Japanese stakes.
A statement said that the Japanese Prime Minister Fumio Kishida and Koichi Hagiuda, the Minister of Economy, Trade and Industry, discussed the Sakhalin energy supply issue at a meeting on July 15.
The Kishida government has stressed the need to retain interests in oil and gas projects off Sakhalin as they are vital to securing stable energy supplies in a global environment of surging energy prices.
The Mitsui and Mitsubishi stakes in Sakhalin II are in addition to Japan’s investments in the Sakhalin 1 project, Sakhalin Oil and Gas Development Co. though a consortium including Japan Petroleum Exploration Co, Japan National Oil Corp, Itochu Corp and Marubeni Corp.
US major ExxonMobil, the operator of Sakhalin I, has already announced its pull-out from the oil venture where it said other shareholders in addition to the Japanese included Russian and Indian companies.
These are units of oil company Rosneft and the New Delhi-based Indian company ONGC-Videsh.
The Japanese companies have taken part in the Sakhalin I oil project since 2006 and they have been main customers for the oil shipments.
Gazprom boosts pipeline natural gas supplies to Europe and China in 2021 and forecasts record earnings
Russian pipeline natural gas supplier Gazprom said it produced 514.8 billion cubic metres in 2021 and bettered the 2020 output volumes by 62.2Bcm as the company boosted volumes to Europe and China and forecast record financial results.
