Japanese energy companies Tokyo Gas and Kyushu Electric Power, as well as JERA, a joint venture between Tokyo Electric Power Co and Chubu Electric Power Co, announced their decision to renew the contract earlier in August.
In June, Russian President Vladimir Putin signed a decree on special economic measures in the fuel and energy sector amid the unfriendly actions of foreign states. The decree provided for the change of the Sakhalin-2 operator. The new operator of Sakhalin-2, Sakhalin Energy LLC, was established on August 5. Russian energy giant Gazprom has 50% plus 1 share in Sakhalin Energy, while 27.5% minus 1 share belongs to British-Dutch petroleum company Shell, 12.5% to Mitsui & Co. Ltd, and 10% to Mitsubishi Corporation.
Foreign companies have to declare whether they agree to accept the stake in the new operator before September 5. However, Shell said on Wednesday that it will continue to work on the withdrawal from the project.
Sakhalin-2 has other long-term contracts. In particular, with Japanese Toho Gas, Tohoku Electric, Osaka Gas, Saibu Gas, South Korean Kogas, Taiwanese CPC and Gazprom’s former structure — Gazprom Global LNG, which is subject to Russia’s counter-sanctions.