Japan Asks Mitsui, Mitsubishi To Stay On In Crucial Sakhalin-2 Project

The Japanese industry ministry has asked Mitsui and Mitsubishi to think positively about their participation in the Russian Sakhalin-2 oil and gas project after the Russian government announced it would boost state ownership.

Reuters reports that industry minister Koichi Hagiuda today asked the two companies, which are minority shareholders in Sakhalin-2, to consider staying on, saying he was due to discuss the matter with a Mitsubishi executive in the coming days.

The public and private sectors will work together to protect the interests of Japanese companies and ensure a stable supply of LNG, Hagiuda said.

A day earlier, Hagiuda told media that The Sakhalin-2 project is extremely important for stable energy supply to Japan, and we will basically continue to maintain the stakes.

Japan is one of the biggest LNG importers in the world and gets about a tenth of the LNG it consumes from Russia.

Earlier this year, the Japanese industry minister said that the Sakhalin-1 and Sakhalin-2 projects are essentially important for energy security because the projects allow Japan to procure supplies below the market price, especially amid current high energy prices.