Mitsui & Co., a Japanese trading company partly owned by Warren Buffett's Berkshire Hathaway, will continue to pursue a natural gas project under development in Russia, Mitsui CEO Kenichi Hori said on May 2.
The Arctic LNG 2 project in Russia's Arctic region is an important part of the global effort to increase natural gas supplies, according to Mr. Hori.
The project's first train, or liquefied natural gas (LNG) export facility, is expected to be completed by the end of this year, Hori said.
The Japanese director said there were no negotiations underway to amend the construction plan but stressed that if there were changes, he would announce them.
Japan will host leaders of the Group of Seven (G7) industrialized nations in Hiroshima from May 19-21. Tokyo officials said the G7 summit would be an opportunity to push for sanctions against Russia and solidarity with Ukraine.
Mr. Hori said Mitsui is complying with G7 rules on trade with Russia.
Mr. Kenichi Hori, Chairman and CEO of Mitsui & Co. (Japan). Photo: Bloomberg
Russia’s largest LNG producer, Novatek PJSC, holds a 60% stake in the Arctic LNG 2 project, while two Chinese companies together hold 20%. France’s TotalEnergies has a 10% stake. Mitsui has a 2.5% stake, and the Japanese government ’s Japan Oil, Gas and Metals National Corp. has a 7.5% stake.
“I think it is important to promote and responsibly implement the LNG projects that we are directly involved in,” including the Russian project, Hori said.
Mitsui holds a 12.5% stake in a separate LNG project on Russia's Sakhalin Island, which has been producing gas for years and accounted for nearly 10% of Japan's LNG imports last year.
Berkshire Hathaway said last November that it owned a 6.6% stake in Mitsui. Buffett told Nikkei in April that he had increased his stake to 7.4%.
Unlike Europe, which is actively reducing its dependence on Russian oil and gas, Japan will likely continue to rely on Russian fossil fuels to meet its energy needs.
“Uncertainties are increasing and geopolitical risks are unpredictable. We are always mindful of the need for energy security,” Hori explained at a press conference last May. “I look forward to working with stakeholders in the LNG business in Russia, recognizing the important role of stable energy supplies . ”
Minh Duc (According to WSJ, High North News)
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