• Home
  • News
  • Russia orders to set up new operator of Sakhalin-2 LNG project in three days - S&P Global
  • 2022 August 5 12:06

    Russia orders to set up new operator of Sakhalin-2 LNG project in three days - S&P Global

    The Russian government has issued an order to set up a new operator for the Sakhalin 2 LNG project in the country's Far East within three days, entering a new phase of the project with supply security on spotlight, according to S&P Global.

    Under the government order issued Aug. 2, Sakhalinskaya Energija will be established in Yuzhno-Sakhalinsk as the new operator of the Sakhalin 2 project, according to the order published on the national legislative database Aug. 3. 

    Gazprom will hold just over 50% in the new entity in line with its ownership of the former operator. Foreign shareholders have a month from the entity's establishment to decide whether to take stakes, according to a previous Russian presidential order signed June 30. 

    The national taxation service was ordered to add it to the register within three days, at which point it will be considered established, according to the order. 

    Within three days after the company's creation, control and obligations related to Piltun-Astokhskoye and Lungskoye fields will be transferred, according to the order. The Federal Subsoil Agency also has three days to reissue licenses to the new company. 

    The Japanese government is confirming details about the Russian order and weighing its response, a government source said. "Under this government order, all rights and obligations based on the PSA (production sharing agreement) law will be transferred to the new company so that LNG SPAs (sales and purchase agreements) with buyers, though not mentioned, are considered to be included," Daisuke Harada, a project director at the Japan Oil, Gas and Metals National Corp. told S&P Global Commodity Insights. 

    "Therefore, based on the enforcement of the order for now, its content does not appear to have an immediate impact on LNG supply under the SPAs," Harada said. 

    The latest Russian order comes amid heightened concerns in Japan over potential LNG supply disruptions after Russia issued June 30 a decree to transfer all rights and obligations held by Sakhalin Energy to a new Russian entity. 

    The decree stipulates existing stakeholders have one month to submit their approval for the transfer of stakes to the newly created company, after which the government will rule on the admissibility of the submissions. 

    The Russian government will decide on transfer or refusal of participatory shares in the new entity and in the case of refusal, may sell to a Russian company within four months, the June presidential decree said. Money from such sales will be transferred to a special account from which the former shareholder can access it minus compensation for damages.

    The latest move came as Sakhalin Energy, the seller of Sakhalin 2 LNG, has asked Japanese lifters to change their settlement banks ahead of an expected transition of the operating company. 

    At least two Japanese lifters of Sakhalin 2 LNG -- Kyushu Electric and Tohoku Electric -- confirmed July 29 that they had received requests from Sakhalin Energy to change their settlement banks.  A Tohoku Electric spokesperson confirmed Aug. 4 that it has started making payments into a new bank account for Sakhalin 2 LNG supply, based on a contract following a notice to change the account.  A Kyushu Electric spokesperson declined to comment Aug. 4 on the latest status on its response following the request to change its settlement bank. 

    More than half of the 9.6 million mt/year LNG production capacity at the Sakhalin 2 project, in which Japan's Mitsui has a 12.5% stake and Mitsubishi 10%, is committed to Japanese offtakers.  Mitsui and Mitsubishi officials said the companies are scrutinizing the Russian order and will consider their responses together with the Japanese government, as well as with other partners. 

    Russia accounted for 9% of Japan's total LNG imports of 74.32 million mt in 2021, its fifth-largest supplier, according to data from Japan's Ministry of Finance.

2022 October 6

19:30 Loading of General Chernyakhovsky ferry begins following flag-hoising ceremony
18:07 MSC updates Noumea Express service
17:29 Russian Maritime Register of Shipping issues statement on the EU Council press release of October 6, 2022
17:27 100-pct stock of Murmansk Sea Fish Port collected in favor of the state under action filed by FAS
17:12 EU adopts its latest package of sanctions against Russia
17:05 Three partners to join the North Field South development project
16:58 Nexans signs Empire Wind contract to bring renewable energy to New York
16:39 RF Government counts on having about 1,100 various ships built at domestic shipyards by 2030
16:38 JCB appoints Maersk as its new global Lead Logistics Provider
16:13 Port Houston orders 26 eco-efficient hybrid Konecranes RTGs
15:35 EST-Floattech signs contract for refit to hydrogen-electrical propulsion of 'FPS Maas' inland shipping barge
15:20 Cargo traffic on North-South ITC can double by 2030 – Mikhail Mishustin
14:58 KSOE wins orders for 7 vessels worth over KRW2tn - BusinessKorea
14:37 EU agrees on eighth package of sanctions against Russia
13:41 MABUX: Bunker Weekly Outlook, Week 40, 2022
13:19 Port of Gdansk handled over 7.6 million tonnes of coal year-to-date
12:55 Allseas to fit vessels with hybrid power solutions from Kongsberg Maritime
12:15 Russian ships can carry about 90 million tonnes of cargo per year
11:36 LR signs contract with Birdon for new Royal Australian Navy Sail Training Ship
11:08 First batch of coal shipped from Syradasayskoye field on Taimyr peninsula
10:34 AB Klaipėdos Nafta declares purchase option to acquire Independence
10:30 Oil production in Russia to decrease by 6-7% in 2023 - Alexander Novak
10:09 NYK and Group Company to introduce integrated shipping system as a DX Foundation
09:47 Wartsila and Capital Gas to partner in greenhouse gas reduction with Fleet Decarbonisation Programme
09:26 OPEC+ approved oil production cut by 2 million barrels a day
09:01 MABUX: In Global bunker market upward trend to continue on Oct 06
07:50 Crowley completes the purchase of 42 acres in Salem, Massachusetts, for the development of the state’s second major offshore wind port terminal

2022 October 5

18:37 Austal Australia to undertake patrol boat autonomy trial for Royal Australian Navy
18:06 Associated British Ports signs new agreement with the UK’s largest privately owned fertiliser importer
17:55 Initiation ceremony for cadets of Admiral Makarov State University of Maritime and Inland Shipping held in Kronstadt
17:36 Kongsberg Digital signs new partnership agreement with Alpha Ori Technologies
17:25 Unmanned electric passenger ships can appear in Saint-Petersburg
17:06 MSPs back Forth Green Freeport bid to deliver green growth plan for Scotland
16:52 DSME lands LNG carrier orders worth KRW1.85tn - BusinessKorea
16:08 GTT receives an order from Hyundai Heavy Industries for the tank design of seven LNG carriers
15:50 Container traffic on Russian Railways’ internal network in 9M’2022 rose by 3.6% YoY
15:36 WSC, ICS and ASA submit their input to the European Commission on the renewal of the CBER
15:27 Bunker sales at Vladivostok port in 9M’2022 fell by 28% YoY
15:04 Alfa Laval to be a technology partner for the project to investigate the on-board capture, storage and off-loading of carbon dioxide
14:41 IMO's GreenVoyage2050 celebrates five years of its Global Industry Alliance to Support Low Carbon Shipping
14:18 Marine passenger infrastructure of Saint-Petersburg should be converted to cater for inland water transport ‒ expert
14:12 ABS approves pioneering autonomous technology for HHI Group
13:54 NOREBO commences preparation works on construction of reefer terminal “Udarnik” in Murmansk Region
13:32 Pavilion Energy and MOL name newbuild LNG bunker vessel
13:02 General cargo ship bound for Russia disabled in Bosphorus - FleetMon
12:42 USC commences serial production of propulsion/steering units ДРК1200М
12:20 UK Government funds consortium led by Unitrove to deliver world’s first zero-emission multi-fuel station for hydrogen and electric ships
12:01 Finnlines to launch two new ro-pax vessels in autumn 2023
11:36 MOL signs LNG carrier charter contract for Sakhalin II project
11:29 Throughput of Azov port in 9M’2022 fell by 13% YoY to 6.8 million tonnes
11:21 Port of Rotterdam Authority presents future scenarios for 2050
11:01 Singapore sets out to drive transformation in bunkering on the world's largest forum for the marine fuel industry
10:39 A.P. Moller - Maersk orders six large ocean-going vessels that can sail on green methanol
10:20 Anemoi and COSCO Shipping Heavy Industry to offer full wind propulsion technology installation services
10:05 Shearwater GeoServices to introduce the geophysical company’s first dual ROV seismic vessel
09:39 MOL joins Blue Visby Consortium
09:28 Traffic volumes on Ust-Luga – Baltiysk ferry line are stable
08:52 MABUX: Upward changes to continue in Global bunker market on Oct 05

2022 October 4

18:43 Samskip adds Value Maritime CO2 capture to decarbonisation strategy
18:32 DEME upgrades DP fallpipe vessel fleet