Mitsui and Mitsubishi will stick with Sakhalin 2 to keep China away from the gas project
© Sputnik / Sergey Guneev
Japanese trading houses, Mitsui and Mitsubishi, are reportedly not considering quitting Russia’s Sakhalin-2 project, that is focused on producing and shipping liquified natural gas (LNG), 60% of which is destined for the Japanese market.
The Japanese trading giants, which hold a total stake of 22,5% in Sakhalin-2, will remain partners to the project, as “prompt exit is risky” and “will be in favor of China,” Nikkei newspaper reports, citing documents submitted by the companies to the Ministry of Economy, Trade and Industry of Japan earlier this month.
The project has been one of the main sources of natural gas supply to Japan with nearly 100% of Japanese LNG imports coming from Sakhalin-2, according to media reports. Located on the Russian island of Sakhalin in the Pacific Ocean, north of Japan, the project reportedly produces nearly 11.5 million tons of LNG annually which is mainly exported to major markets in Asia.