TOKYO: Japanese trading house Mitsubishi Corp. plans to notify the Russian government of its intention to join a new operator of the Sakhalin-2 oil and natural gas development project in the Russian Far East, it was learned Thursday.

Another Japanese trader Mitsui & Co. is also expected to do the same. The two firms are seen notifying Moscow within this month.

The major traders are aiming to procure liquefied natural gas stably for Japan by maintaining their stakes in the project. However, the Russian government may impose new conditions over their participation.

“We are considering the move from a comprehensive point of view after careful consideration,” a Mitsubishi public relations official said.

The Russian side is expected to examine whether to approve participation within three days of notification.

Russia established the new operator of the Sakhalin-2 project on Aug. 5.

The two Japanese traders have been given until Sept. 4 to notify the Russian side if they wish to join the new company with similar investment shares to those for the previous Sakhalin-2 operator. Mitsui and Mitsubishi had a stake of 12.5 percent and 10 percent, respectively, in the former operator.

Japan procures 6 million tons of LNG a year from Sakhalin-2, or about 8 percent of its total LNG imports.

The Japanese government has requested the two traders to maintain their investment in the project in a bid to ensure the stable supply of LNG.

“We are aware” that the two companies are ready to join the new Sakhalin-2 operator, Chief Cabinet Secretary Hirokazu Matsuno told a press conference Thursday. “We’ll make every effort to ensure stable LNG supply while closely monitoring the situation,” the top government spokesman added.

JIJI Press