Japanese gas and electric utilities with long-term contracts to buy liquefied natural gas (LNG) from the Sakhalin-2 project in Russia have received a new contract offer from the newly formed Russian operator, some companies said Wednesday.
The Russian entity was registered on Aug. 5 to replace the project operator Sakhalin Energy as Moscow rewrites rules for foreign firms operating in the country amid global sanctions after its invasion of Ukraine.
For resource-poor Japan, the project is an important source for its energy security. It buys about 9% of its LNG from Russia, mainly from Sakhalin-2.