• 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 August 8

10:04 Geoizol wins tender for construction of infrastructure at Pionersky passenger terminal
09:16 Crude oil futures rise after a fall on August 5
08:57 MABUX: No firm trend in Global bunker market on Aug 08

2022 August 7

15:13 BPA calls for companies to join the Busan Port Overseas Market Expansion Project 2022
14:27 Wan Hai Lines holds online ship naming ceremony for new vessels
11:53 Keppel announces termination of contracts
09:49 INEOS at Grangemouth backs bid for Forth Green Freeport

2022 August 6

14:36 Announcement on execution of agreement regarding establishment of JVC with TOYO
12:31 Borr receives LOI for jack-up drilling rig
10:23 RightShip to acquire  Thynk Software’s maritime tech business

2022 August 5

18:27 Carnival Corporation upgrades global fleet with fuel- and energy-saving technology
18:07 Yilport breaks all-time container handling record in H1 2022
17:50 IAA PortNews’ summary of past week news
17:23 UK authorities give green light to the sharing agreement between P&O Ferries and DFDS
17:06 Montagu acquires Lloyd’s List from Informa
16:57 A. P. Moller - Maersk to acquire Danish company Martin Bencher Group
16:37 Three more ships receive the green light to leave Ukraine’s Black Sea ports on Friday
16:29 Throughput of port Kavkaz in 7M’2022 fell by 22% Y-o-Y to 12.5 million tonnes
16:13 Russia to spend $30 billion on Northern Sea Route by 2035 - Reuters
15:24 Yang Ming names new 11,000 TEU vessel, ‘YM Throne’
15:06 Shipping faces investment obstacles in low-carbon marine fuels - S&P Global
14:44 NSR development plan foresees completion of sea terminal for Pavlovskoye deposit development in 2025-2026
14:02 Kawasaki receives an order for an 86,700 m³ LPG-fueled LPG/ NH3 carrier
13:31 Two new ferries started delivering cargo from the port of Temryuk to the Turkish port of Samsun
13:12 Wilhelmsen joins industry partners to launch innovation competition to drive Diversity, Equity, and Inclusion
12:53 Kawasaki receives order for steam turbine generator from Taiwan
12:20 Tokyo MoU and Paris MoU launch joint concentrated inspection campaign ON STCW
12:06 Russia orders to set up new operator of Sakhalin-2 LNG project in three days - S&P Global
11:42 Railway link with Lugaport terminal opens in the port of Ust-Luga
11:20 Kalmar received order from Yilport for a total of 27 new mobile equipment
11:08 Austal Australia delivers 2nd Evolved Cape-class Patrol Boat to the Royal Australian Navy
10:27 WTI futures show fluctuations below $89 per barrel
10:06 Sinopec Fuel Oil remains China's top bunker supplier - S&P Global
09:45 Draft law on NSR passage regulations for foreign warships submitted to RF State Duma
09:28 ICTSI net income up 50% to US$294.5mln in H1 2022
09:07 CargoWise and ZIM connect to improve customer experience
08:57 MABUX: Global bunker prices may continue to decline on Aug 05
08:18 ABS publishes industry leading metadata best practices to support marine and offshore operations
06:34 Russia's Gazprom says other Nord Stream gas turbines also face sanctions block - S&P Global

2022 August 4

18:30 Naval Architect selected for UC San Diego’s new California coastal hybrid-hydrogen research vessel
18:04 International Chamber of Commerce calls for cautious optimism as markets begin to stabilise
17:51 Port of Riga expects record number of cruise ship calls during 2022 cruise season
17:48 DP World Southampton connects UK and central America with major new reefer service
17:26 Khersones sailing boat accepts on board more than 100 cadets for the second shift
17:02 Russia finds a new route to oil market via Egypt’s El Hamra oil terminal - Bloomberg
16:48 NSR development plan foresees annual cargo traffic of 220 million tonnes in 2035
16:45 Korea and China compete in the methanol-powered ship market - BusinessKorea
16:24 31 million tonnes of green methanol necessary to replace diesel fuel of North American fleet - The Blue Sky Maritime Coalition
16:12 WinGD’s most powerful engine passes upgrade Type Approval Test
16:00 Crude oil from the field is being received in a reduced mode at the CPC pipeline system
15:37 Cargo traffic within Azov-Don Basin of Russia’s IWW in 7M’2022 fell by 51% YoY to 2.25 million tonnes
15:13 NYK to participate in off-grid tidal energy demonstration in Singapore
14:46 MABUX: Bunker Weekly Outlook, Week 31, 2022
14:42 Xeneta issues real-time ocean freight update
14:25 Samus Shipbuilding and Repair Yard launches first non-self-propelled barge built for Norilsk Nickel
14:02 Sinopec Capital and Johnson Matthey explore strategic collaboration across decarbonisation and hydrogen technologies
13:41 Shipping industry continues introducing LNG as key alternative fuel for new ships
13:22 Schedule reliability improves to 40% in June 2022 - Sea-Intelligence
12:52 Four companies launch study on application of aerospace engineering technology to wind-powered vessels
12:34 Oboronlogistics reports growing traffic volumes on Ust-Luga – Baltiysk railway ferry line