Japan continues its participation in Russian LNG project
(MENAFN) Japan has decided to continue its participation in Russian liquefied natural gas (LNG) projects on Sakhalin Island, citing their strategic importance for the country’s energy security. The decision, outlined in Japan's annual Diplomatic Blue Book, emphasizes the necessity of these projects for ensuring a stable energy supply in the medium to long term. However, Japan also reiterated its commitment to gradually reducing reliance on Russian energy, including oil and coal, while minimizing any negative impacts on its citizens and businesses.
Despite fully supporting Western sanctions against Russia in response to the Ukraine conflict and participating in the G7's price cap on Russian oil, Japan’s state-run consortium Sodeco retains a 30% stake in the Sakhalin-1 oil and gas project. Sakhalin-2, a major LNG project, also remains vital, supplying 4% of the global market. Although some foreign companies, like Shell, have exited the projects, Japanese firms Mitsui and Mitsubishi have chosen to keep their stakes in Sakhalin-2.
Japan does not import fuel directly from Sakhalin-1 but values the project for its role in diversifying energy sources and ensuring long-term supply stability. With 95% of its oil imports coming from the Middle East, Japan considers Sakhalin's resources crucial for its energy future. Japan currently relies on Russia for 9% of its LNG supply, mainly through long-term Sakhalin-2 contracts.
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