By Florence Tan and Yuka Obayashi
SINGAPORE (Reuters) -Russia’s Sakhalin Energy Investment Co has asked its liquefied natural gas (LNG) customers to make payments via a Moscow unit of a European bank and is negotiating to switch payment currencies away from U.S. dollars, two sources familiar with the matter said on Friday.
The changes follow Russian President Vladimir Putin’s June 30 decree to create a new firm to take over all the rights and obligations of Sakhalin Energy.
Some buyers are already paying via the designated bank but these payments are still made in U.S. dollars, added the sources, who spoke on condition of anonymity.
Among the alternative payment currencies being discussed were the Chinese yuan, the Japanese yen and South Korean won, one of the sources said.
Sakhalin Energy could not immediately be reached for comment. Its LNG buyers, Tokyo Gas and JERA, declined to comment.
There has been no update on the formation of the new company, the sources said.
Sakhalin Energy is the joint venture that opearates Sakhalin-2, one of the world’s largest LNG projects with output of 12 million tonnes.
State-run Gazprom (MCX:GAZP) has a 50% plus one share stake while other stakeholders include Shell (LON:RDSa) and two Japanese trading companies Mitsui & Co and Mitsubishi Corp.
Most of the exports from Sakhalin-2, which accounts for about 4% of the world’s LNG production, goes to Japan.
Source:reuters