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The Sakhalin-2 project: Mitsui, Mitsubishi and Royal Dutch Shell partner Gazprom at the Russian project in Far East Russia

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Mitsui talks with Gazprom to expand tie-up

Japanese trading house Mitsui is in talks with Gazprom to expand their alliance on the Russian gas export monopoly's projects in Russia.

Mitsui, fellow Japanese trading company Mitsubishi and Shell are Gazprom's partners at the Sakhalin-2 project, which recently shipped Russia's first liquefied natural gas to Japan.

The Nikkei business daily said earlier they are considering an alliance on the Chayanda gas field in eastern Siberia, which has estimated gas reserves of 1.2 trillion cubic metres, and the Shtokman gas field in the Barents Sea, which has estimated gas reserves of more than 3 trillion cubic metres.

"We are considering whether we can form alliances in Gazprom's other projects in Russia, based on our partnership we developed through the Sakhalin-2 project, and we are discussing such a possibility with Gazprom," Mitsui said in a statement.

A spokesman said they are not yet discussing details.

Gazprom signed a memorandum of understanding with Japan on Tuesday to explore gas projects in eastern Russia, seeking ways to process gas near the Pacific city of Vladivostok for supply to consumers in Russia and the Asia-Pacific region including Japan.

The Agency of Natural Resources and Energy, part of Japan's Ministry of Economy, Trade & Industry, as well as Itochu and Japan Petroleum Exploration Company (Japex) signed the memorandum, a Reuters report said.

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