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Japanese companies confirm interest in Sakhalin-2 project

MOSCOW, April 21. /TASS/. Japanese companies confirmed their interest in financing the Sakhalin-2 project, purchases of liquefied natural gas and construction of the third phase of the project, Russian Minister of Energy Alexander Novak said in an interview with Rossiya 24 TV channel.

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"As for Sakhalin-2, we discussed expansion of this project, construction of the third stage, and the Japanese partners confirmed their interest. Firstly, in purchases of liquefied natural gas from this project. Secondly, in the possibilities for financing the project, and in participating in the construction," he said.

Earlier, Russia and Japan held the third meeting of the advisory energy council with participation of Russian Energy Minister Alexander Novak and Japanese Minister of Economy, Trade, and Industry Hiroshige Seko, responsible for the development of cooperation in the Russian direction, took part.

The Sakhalin-2 project is still the only Russia’s active project for production of liquefied natural gas. Sakhalin Energy operates the project, the company signed a production sharing agreement with the Russian side, represented by the Russian government and the Sakhalin region administration in 1994. It includes development of the Piltun-Astokhskoye oil field and the Lunskoye natural gas field offshore Sakhalin Island in the Okhotsk Sea, and associated infrastructure onshore, their recoverable reserves of which are estimated at 150 mln tonnes of oil and 500 bln cubic meters of gas. Shareholders of Sakhalin Energy - Gazprom (50%), Royal Dutch Shell (27.5%), Japanese Mitsui (12.5%) and Mitsubishi (10%).

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