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    Japan's NYK records loss in LNG carrier business

Summary

The company reported an extraordinary loss in the LNG carrier business in relation to LNG transportation involving the Sakhalin 2 LNG and oil project.

by: Shardul Sharma

Posted in:

Complimentary, Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply, Corporate, News By Country, Japan

Japan's NYK records loss in LNG carrier business

Japanese shipping company NYK Line has booked an extraordinary loss in its energy business division due to the "deteriorating business environment" caused by the situation in Russia and Ukraine, it said on August 3.

The company reported an extraordinary loss of about ¥17.8bn ($130mn) in the three months to June 30 in the LNG carrier business in relation to LNG transportation involving the Sakhalin 2 LNG and oil project.

Gazprom owns a 50% plus one share in Sakhalin Energy, the project's operator, while Shell has a 27.5% stake, and Mitsui and Mitsubishi have shares of 12.5% and 10% respectively.

Russia in June seized control of the Sakhalin-2 project under a Kremlin decree. The Russian government will establish a limited liability company that will take over the rights and obligations of Sakhalin Energy.  

Mitsui and Mitsubishi also slashed the value of their stakes in the Sakhalin 2 project on August 2.