Shell Sakhalin LNG exit sparks concerns: Update

Shell Sakhalin LNG exit sparks concerns: Update

Adds Japanese government comments in fifth paragraph

Singapore, 1 March (Argus) — Shell's exit from the Sakhalin 2 integrated oil and gas project in Russia's far east has sparked mixed reactions from the LNG plant's term offtakers, with some concerned about longer-term operations and others shrugging off the move.

Shell on 28 February said it intends to exit all its Russian joint ventures with state-controlled Gazprom and related entities, including its 27.5pc in the Sakhalin 2 project, following similar moves by BP and Norway's Equinor in response to Moscow's invasion of Ukraine.