President Putin has ordered that ownership of the LNG operation be changed to a new domestic entity
President Vladimir Putin has signed a decree to transfer the rights of the giant Sakhalin-2 oil and liquefied natural gas project to a new Russian company. The move comes in response to actions from “unfriendly states” and could force out foreign stakeholders, including British and Japanese investors.
- What is Sakhalin-2?
It is one of the world’s largest LNG projects with an annual output of 12 million tons. The joint venture between Russia’s Gazprom, Japan’s Mitsui and Mitsubishi and UK-based Shell was launched in 2009. The facility is located on the Russian island of Sakhalin in the Pacific Ocean, north of Japan. It supplies LNG mainly to markets in Asia. - Who are the stakeholders in the project?
Sakhalin-2 was managed and operated by the Sakhalin Energy Investment Company. The majority stake (50%) plus one share belongs to Russian…
