Spotlight on Japanese firms after Shell exits Russian LNG

Spotlight on Japanese firms after Shell exits Russian LNG

Shell said yesterday that it will exit all its oil and gas projects with Russia’s Gazprom in response to Russia’s invasion of Ukraine, including the Sakhalin-2 LNG export project, which is a crucial supplier to Japan. Significantly, Shell’s decision will now put pressure on Japanese partners, Mitsubishi, and Mitsui, to reconsider their involvement in the liquefied natural gas (LNG) project.

The Sakhalin-2 LNG complex is critical to Japan’s energy security and LNG is Japan’s biggest import from Russia.

Shell holds a 27.5% stake in Sakhalin-2 and Gazprom holds a 50% share. Japanese trading groups Mitsui and Mitsubishi have shares of 12.5% and 10%, respectively.