Sakhalin-2 Oil and Gas Project

under operation

The Sakhalin-2 project is an oil and gas venture in Russia's Far East, in which Japanese companies Kobe Bussan and Mitsubishi Corporation invested 45% in the 1990s. It is a key source of liquefied natural gas (LNG) for Japan. Despite challenges such as Russia's nationalization of resources and the Ukraine invasion, Japan has persisted with the project for energy security. The Japanese government persuaded the US to exempt Sakhalin-2 from sanctions, deeming it critical for energy self-sufficiency. Recently, Japan imported crude oil via Sakhalin-2 for the first time due to reduced oil reserves from the Strait of Hormuz blockade, and plans to expand oil procurement through the project.