Media: Toho Gas renegotiated the contract for the purchase of LNG from Sakhalin-2

MOSCOW, 20 Sep — PRIME. The Japanese company Toho Gas has signed a contract with the new operator of the Russian project for the production of liquefied natural gas (LNG) Sakhalin-2 for the supply of this energy resource, the Kyodo news agency reported.

According to the terms of the signed contract, the Japanese side will purchase 500,000 tons of LNG annually until 2033.

Earlier contracts were also renegotiated by Japanese JERA, a joint venture between Tokyo Electric Power Co and Chubu Electric Power Co, Tokyo Gas, Hiroshima Gas and Kyushu Electric Power. In addition, the Japanese companies Mitsui&Co and Mitsubishi Corporation received permission from the Russian government to transfer shares in the new Sakhalin-2 operator.

On June 30, Russian President Vladimir Putin signed a decree ordering the replacement of the operator of the Sakhalin-2 project with a new, Russian, legal entity. 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 50% stake in Gazprom Sakhalin Holding. The Government of the Russian Federation allowed the Japanese companies Mitsui&Co and Mitsubishi Corporation to transfer their shares in the project. Shell announced in September that it would not participate in the new operator.

Sakhalin-2 also has other long-term contracts. In particular, with Japanese Tohoku Electric, Osaka Gas, Saibu Gas, South Korean Kogas, Taiwanese CPC, the former Gazprom structure Gazprom Global LNG (fell under counter-sanctions of the Russian Federation).