Russia's Sakhalin Energy to supply first carbon neutral LNG to Japan's Toho Gas

Russia's Sakhalin Energy will deliver the first carbon neutral LNG cargo to Japan's Toho Gas from its Sakhalin-2 project, the Gazprom-led operator said Sept. 28, without specifying the volume.

The carbon neutral delivery is a key step in implementation of the company's green LNG strategy, which aims to reduce the carbon footprint of the Sakhalin-2 project in Russia's Far East.

Sakhalin is aiming to become carbon neutral by 2025 and is already the location for several energy transition pilot projects.

"Sakhalin Energy will continue moving in this direction, developing cooperation with the buyers in the Asia-Pacific, who place a big focus on the range of environmental issues," CEO Roman Dashkov said.

The first shipment of the carbon neutral LNG will take place in early October, the company said. The cargo will be delivered by the Russian gas carrier Grand Aniva to Chita LNG Terminal.

In addition, Sakhalin Energy and Toho Gas have also signed a document on strategic partnership and cooperation in decarbonization.

The two-train Sakhalin LNG facility -- which was launched in 2009 -- produced and shipped a record volume of LNG in 2020, reaching 11.6 million mt.

Shareholders in Sakhalin Energy are Gazprom (50% plus one share), Shell (27.5% minus one share), and Japanese companies Mitsui (12.5%) and Mitsubishi Corporation (10%).