Media: Japanese JERA renegotiated the contract with the new Sakhalin-2 operator

MOSCOW, 26 Aug — PRIME. Japanese energy company JERA renegotiated an agreement on the purchase of liquefied natural gas (LNG) with the new operator of the Sakhalin-2 project, Sakhalin Energy, Reuters reported.

“JERA signed an agreement on Thursday with the new operator of the Sakhalin-2 energy project in Russia to maintain a long-term contract for the purchase of LNG,” the authors of the material noted, citing an official representative of the Japanese company. According to them, the volume, price and currency in which deliveries are paid remained the same in the updated document.

In August, the media reported that Sakhalin Energy was working on renegotiating long-term contracts with buyers of its LNG. Agreements are renegotiated on the same terms, but the new documents allow for payment in other currencies (rubles, yen, pounds sterling) if payments in dollars are not possible, as well as transactions through Russian banks, such as Gazprombank.

In addition to JERA, Sakhalin-2 has other long-term contracts. In particular, with Japanese Tokyo Gas, Kyushu Electric, Toho Gas, Tohoku Electric, Hiroshima Gas, Osaka Gas, Saibu Gas, South Korean Kogas, Taiwanese CPC, the former structure of Gazprom Gazprom Global LNG (fell under counter-sanctions of the Russian Federation). Some buyers, however, do not intend to renegotiate the agreement. In particular, the newspaper “Kommersant” on August 25 wrote, citing sources, that this is the position of the Anglo-Dutch Shell.

Against the backdrop of these reports, Sakhalin Energy assured earlier on Friday that LNG shipments from Sakhalin-2 are being carried out in accordance with the current schedule and existing contracts, while an active search for new markets is underway.

On June 30, Russian President Vladimir Putin signed a decree in connection with the unfriendly actions of foreign states, which ordered to change the operator of the Sakhalin-2 project to a new, Russian, legal entity, and the preservation of a share in it by foreigners after that remained in question. In the former operator, Sakhalin Energy, Gazprom owned 50% plus one share, Shell 27.5% minus one share, Mitsui 12.5%, Mitsubishi 10%.

The new operator (OOO Sakhalin Energy) was established on August 5 with a stake in the charter capital of Gazprom Sakhalin Holding. And foreign partners have the right to stay in the project if they announce such a decision before September 5. Japanese media reported on August 25 that Mitsubishi and Mitsui decided to continue participating, but Shell did not clearly express its position after the decree. However, back in February, the company announced that it would withdraw from joint ventures with Gazprom and Gazprom Neft, including Sakhalin-2.