Japan’s Mitsubishi Corp (8058.T) expects no operational problems at the Sakhalin-2 liquefied natural gas (LNG) project in Russia’s Far East, including maintenance, even without Shell (SHEL.L), its chief executive said on Friday.
“We see a low probability of significant disruption to the Sakhalin-2 operation including maintenance at the moment,” CEO Katsuya Nakanishi told an annual general meeting, when asked about the impact of Shell leaving the project.
Japanese trading companies Mitsubishi and Mitsui & Co (8031.T) retained their 22.5% combined stakes in Sakhalin-2 after the Kremlin ordered the establishment of a new local operator in retaliation for Western sanctions imposed on Moscow after it sent troops into Ukraine last year.
Shell, however, quit Sakhalin-2 as one of many Western firms that pulled out of Russia.
In April, the Russian government approved the sale of Shell’s 27.5% stake to local natural gas producer Novatek (NVTK.MM).