Mitsui OSK signs a charter contract with the new Russian operator of the Sakhalin-2 LNG project

TOKYO, Oct 5 (Reuters) – Japan’s Mitsui OSK Lines (MOL) (9104.T) said on Wednesday it has signed a long-term charter contract with new Russian liquefied natural gas (LNG) project operator Sakahlin- 2 for The LNG carrier Grand Mereya will continue its maritime service.

Russian President Vladimir Putin signed a decree in June taking over the LNG project, creating a new legal entity to deal with buyers and shareholders.

MOL’s move comes after Japanese utilities, such as JERA and Tokyo Gas (9531.T), signed agreements with the new Russian operator to maintain long-term LNG deliveries and Japanese trading houses Mitsui & Co (8031.T) and Mitsubishi Corp (8058.T) have been approved by Russia to take a stake in the new operator. Read more

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MOL on Tuesday signed the contract with new operator Sakhalin Energy LLC through a subsidiary 60% owned by MOL, it said in a statement.

The vessel has transported LNG from the project under a long-term charter contract with Sakhalin Energy Investment Company Ltd, the former operator, and will continue the same services with the new operator, MOL said.

MOL said it had complied with sanctions imposed by the international community – in a likely reference to Western measures against Russia during its invasion of Ukraine – and continued to consult with various parties, including the Japanese government and project partners.

Sakhalin-2 is one of the largest LNG projects in the world, supplying around 4% of the global market.

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Reporting by Yuka Obayashi Editing by Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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