Russian LNG plant halts deliveries to some Asian buyers

Russian LNG company Sakhalin Energy has reportedly halted shipments to at least one North Asian customer due to payment problems and some delays in revised contracts. Natural gas shipments from Russia to Asian customers have been experiencing problems, people familiar with the matter said. Sakhalin Energy has halted shipments to at least one North Asian customer due to payment problems and some delays in revised contracts. The Moscow government took over ownership of the Russia-based Sakhalin Energy facility from a Bermuda-based company on Aug. 19 and demanded that customers make payments to banks in Moscow and adhere to the new agreements. The sources said only a few buyers had renewed their agreements, and that gas flows to some countries, such as South Korea and Japan, were under threat. The reduction in deliveries could lead to further gas disruptions in Japan, one of the biggest buyers of Sakhalin gas, this year. Russian leader Vladimir Putin, who is seeking to control Russia’s energy assets, has also restricted gas flows to Europe. With this development, natural gas prices increased sharply from Europe to Asia.![