Sakhalin Energy Sent First LNG Cargo To Japan

Sakhalin Energy, which is controlled by Gazprom, loaded the 145,000 cubic meter cargo for the two-day voyage to Tokyo Bay and the first Japanese buyers of Russian gas: Tokyo Gas and Tokyo Electric Power.

The Sakhalin-2 project, in which Royal Dutch Shell owns a minority stake after ceding control to Gazprom, is the first LNG plant in Russia. Japan's Mitsubishi and Mitsui also own stakes. Sakhalin-2 became symbolic of resource nationalism in Russia and the state's ability to overturn previous deals.

Sakhalin Energy said Sunday that "practically all" of the 9.6 million tons of annual production capacity had already been committed in long-term sales contracts to buyers in Japan, South Korea and other markets.