Mitsui company recalls all employees from the Arctic LNG-2 project

26.12.2023       

Mitsui & Co., Ltd., which participated in the liquefied natural gas (LNG) development project В«Arctic LNG-2В» beyond the Arctic Circle in the Arctic, which is due to begin next year as part of a joint venture, has decided to recall all employees. This happened due to US sanctions. Mitsui & Co.,Ltd. participates in the project through the J-Arc company. NOVATEK owns 60% of the project, the remaining 40% is owned in equal shares by Mitsui (Japan), TotalEnergies (France), CNPC and CNOOC (China).
Russian business newspaper В«KommersantВ» reported on the 25th that all four foreign companies with interests in В«Arctic-2В», including J-Arc, notified the Russian side that their participation in the business was frozen due to sanctions.
; This month, Reuters reported that Novatek informed stakeholders that sanctions have made timely supplies of LNG for В«Arctic-2В» impossible.
Mitsui & Co. stated that it В«will refrain from commentВ» regarding the cancellation of his secondment to J-Arc and the freezing of his participation in the business.
Regarding the issue of sanctions against Arctic LNG-2, it is noted that countries, including Japan, may be forced to reconsider their LNG purchases. However, if the project is curtailed, there is a risk that Japan's investments will turn into non-performing loans, and the Japanese government plans to discuss with the United States how to respond to the sanctions.
В«Arctic LNG-2В» plans to produce about 20 million tons of LNG per year. In 2019, Japan decided to participate in LNG in order to ensure stable supplies and diversify supply sources, as well as to positively influence the negotiations on the Japan-Russia Peace Treaty.
Source: Sankei